US bond yield spike spooks Street; Sensex ends 410 points lower

Analysts see correction as a trend reversal that could last a while

After a two-month rally in stock prices that pushed the benchmark BSE Sensex beyond 60,000, Dalal Street took a breather on Tuesday, closing with losses of 0.7 per cent or 410 points. Despite this, the index is still up nearly 15 per cent since the beginning of August.

Many analysts see Tuesday’s correction as a trend reversal that could last a while because of a steady rise in the 10-year US bond’s yields that acts as a benchmark for interest rates in the United States and across the world.

US bond yields rose by nearly 5 basis points (bps) or 3.3 per