Explained: Why is a rise in bond yields a concern for everyone?

A rise in sovereign bond yields means a rise in the interest rate in the economy

The 10-year bond yields touched 6.20 per cent on Monday, the highest since April 21, 2020. In the ordinary course of things, this may not sound much, but the Reserve Bank of India (RBI) has tried very hard to keep the yields below 6 per cent in this fiscal to enable the government to borrow cheaply. Bond investors obliged the RBI, but after the Union Budget this year, the mood has soured. The implications of a bond market strike can be quite negative for the economy. Here’s why.
 

Why are the bond yields rising?  

The primary reason is oversupply of