A Thread 🧵on how bond yields impact stock market ?

Must read for beginners in #StockMarket.

(RT to maximize reach.)

#Bonds #BondYields #StockMarket #Investing

What is #bond ?

Bonds are issued by governments and corporations when they want to raise money. By buying a bond, investor is giving the issuer a loan, and issuer agrees to pay the investor back the face value of the loan on a specific date, and to pay periodic interest as well.
What is bond yield ?

Bond yield, on the other hand, is the return that an investor gets on that bond or on a particular government security.

#Investing #StockMarket #Bonds
Relation between #InterestRates, #BondYield and #BondPrice :

A fall/rise in interest rates in an economy pushes up/pulls down bond prices. However, bond yields fall/rise in this situation.
Effect of Bond Yields on Economy & #StockMarket :

Rise in bond yields denotes higher interest rates in economy. This increases borrowing costs for companies & consumers. This ultimately reduces overall demand in economy & negatively impacts #StockMarket.
🌟Conclusion 🌟

Bond Yields ⬇️ Stock Market ⬆️
This is what happened

US 10-year T-note yield surged to a 1-year high of 1.609 percent.

10-year UK gilt yield rose to an 11-month high of 0.829 percent.

10-year German bund yield climbed to an 11-month high of -0.216 percent.

This resulted in global equity sell off.
This resulted in Bloodbath on Dalal Street as #BSE #Sensex fell 1,939 points and #NSE #Nifty settled below 14,550.

More from Genericlearnings

A list of all the articles that we have created - From Banking to Fiber!

The content in the articles has been written in a very simple language which will help you learn everything about the sector and/or the company!

Do Retweet and help your fellow tweeples learn!

Let's go 👇

Starting with Financials -

A to Z of Banking, all basics of banking explained -


Top 5 Banks and their strategies -


Large Bank - HDFC Bank - How did HDFC Bank become HDFC Bank -

Mid Sized Bank - Kotak Mahindra Bank

How did they avoid all NPAs from 1999? What makes Uday Kotak's Concalls a goldmine of information on the Banking sector? Everything explained!

We have given details from 1999! The most comprehensive article ever!

Large NBFC - Consumer Durables Play - Bajaj Finance

From its origins to how it gives 0% EMI to how it earns money from manufacturers - everything explained!

More - Origins, Products, Loan Book, Cross-Selling, Risk management, Concalls of 8 Years,

Gold NBFC - Manappuram Finance

Origins (with fun facts)

Products, 10Y Financials, Business model and how do they make money, How does a gold loan work, Operational efficiency, peer comparison, mgmt commentary, why we don't like the stock, and much
Personal Finance 101 – My learning’s about investing

This topic is for everyone, whether you manage your money yourself or through your advisor, it will go a long way in managing your finances.

Do re-tweet & help us educate retail investors (1/n)

Subscribe to our YouTube for some interesting educational content around Personal Finance -

And you can also join our Telegram channel for regular updates – https://t.co/Ekz6I8pDGt (2/n)

(1) Lets start with Life Insurance

Term Insurance is the best way to take an insurance cover & probably the only product to buy in life insurance. Make sure u disclose all the necessary information before taking the insurance. Smoking, Alcohol, any pre-existing deceases etc(3/n)

Have atleast 10-15 times of your annual income as insurance cover

But there are variants of term insurance that you should avoid (4/n)

(A) Term plan with return of premium

For a non-smoker born on the 1st Jan 1985 & policy term 39 years (till age 75), the regular premium for a 1-cr term insurance is 22,157 (inclusive of GST) but with returns of premium is 42670 (inclusive of GST). An increase of 20,513 (5/n)

You May Also Like