Alarming uptick in Covid-19 graph stokes traders' fears in bond market

The Indian bond market, which has been following the rise in US yields of late, should be able to temper its demand for higher yields

The renewed surge of Covid infections is being seen with some trepidation by the bond market participants, even as further lockdowns could hamper the economy and force the government to borrow more to finance its widening deficit. 
 
The bond market is still not sure if a nationwide lockdown would be feasible, but the alarming rise in Covid cases would crimp economic activity. This, say participants, would be at a time when the country has reopened and the government’s tax collections have gathered pace. 
 
The markets, for now, have taken comfort in the US Federal Reserve (Fed) chairman stating