Domestic mutual funds roll out global debt funds amid rising yields

These higher yields make them the right fit for certain use cases. Investment advisors say the product can be looked at when saving for overseas goals

With US Treasury yields hitting multi-decade highs, domestic mutual funds (MFs) are rolling out international debt funds.

After Bandhan MF's US Treasury Bond 0-1 year Fund of Fund (FoF), Aditya Birla Sun Life (ABSL) MF has come out with US Treasury 1-3 Year Bond ETFs FoF and 3-10 Year Bond ETFs FoF.

US bonds, which generally offer low yields, have turned attractive post the 525-basis point hike in US interest rates. According to Bloomberg data, the 1-year and 2-year US treasury yields now stand at 5.4 per cent and 5.1 per cent, respectively.

Although the yields remain lower than