Spike in bond yields spook Wall St; ADRs slide

The US markets tumbled on Tuesday as bond yields rose to fresh five-year high. Investors fear that rising yields may cut corporate profits and deter takeovers. The five-year bond yeild soared to 5.3% as agaisnt the Fed funds rate of 5.25%.

The Dow Jones industrial average dropped 130 points to 13,295. The Nasdaq shed 22 points to 2550.

Indian ADRs ended with significant losses yesterday. Infosys, Satyam, Wipro, Patni Computers, HDFC Bank, MTNL, VSNL, Tata Motors and Dr.Reddy's were down 1-3% each at $50.74, $24.92, $15.71, $26.07, $81.21, $7.50, $22.12, $16 and $15.01, respectively. ICICI Bank, however, moved up 1% to $47.35.