As US 10-year Treasury yield hits 3%, nervousness grips Indian markets

Nervousness in Indian markets is creeping in across all asset classes as US 10-year treasury yields touch 3 per cent after four years and the dollar starts rising from its multi-year lows. 

The recent rise in portfolio outflow could be an indication of future strain in the system, even as investors are well informed about the pace of normalisation of monetary policies in developed nations. 

The rupee on Wednesday tumbled to a 14-month low, while bond yields hardened and equities fell on continued pull-out by foreign investors from various asset classes. 

So far in April, foreign portfolio investors (FPIs) have sold $2.05 billion