Markets slip by up to 0.9% as yields rise on hawkish Fed comments

Reports of fresh sanctions against Russia further impact sentiment. Investors worry that the growing isolation of Russia will further disrupt commodity flows

The benchmark indices declined for the second day in a row as US bond yields rose amid worries of over reduction in Federal Reserve’s $9 trillion balance sheet. Most risky assets corrected after Fed Governor Lael Brainard commented that the central bank would start balance sheet reduction “at a rapid pace” as soon as next month. Experts said markets are yet to price in such a prospect.

The benchmark Sensex ended the session at 59,610, with a decline of 566 points, or 0.9 per cent. The Nifty, on the other hand, ended the session at 17,807, a drop of 150 points