US bond yield is global finance’s Achilles heel: Uday Kotak after Fed meeting
Economic Times 1 hr ago·30 Jul 2026, 8:15 am
Uday Kotak, the chief of Kotak Mahindra Bank, has warned that rising US bond yields are a major risk for the global economy. This follows the Federal Reserve's latest meeting, where the yield on the 30-year US Treasury bond hit a 19-year high. This sharp rise signals that investors are worried the Fed might keep interest rates higher for longer to fight inflation.
For Indian investors, this is significant because higher US yields make dollar-denominated assets more attractive. This can lead to a 'twin balance sheet' problem, where foreign investors pull money out of emerging markets like India to buy safer US assets. Consequently, domestic stock markets and the rupee often face pressure when US yields climb.
Investors should watch the US inflation data and the Fed's future policy statements closely. If yields continue to rise, it could lead to volatility in Indian equities and the currency. Keeping an eye on global liquidity trends will be key for navigating this period.
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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