Indices slide as bond yields march ahead; Sensex falls 388 points

This is fifth decline in six sessions; analysts expect markets to react to inflation data today

The benchmark indices declined for the second consecutive session as bond yields – both in the US and India – continued to rise, prompting investors to reassess the risk-reward ratio for equity investing.

The 10-year US Treasury yield jumped to the highest since December 2018 to 2.82 per cent, while the domestic 10-year government security ended close to a three-year high of 7.19 per cent.

Investors’ appetite for risk assets has taken a hit as bond yields have hardened globally following the US Federal Reserve’s decision to aggressively tighten monetary policy to combat inflation.

After dropping nearly 666 points, the benchmark Sensex ended