When the US sneezes, the world catches a cold, goes the saying. In the past year, we have seen many countries, along with US, catch a cold, but India has proverbially only “sneezed”. The year has seen global central banks fight persistent high inflation. This has led to a sharp rise in yields across the globe. India, too, has witnessed an increase in yields. To put this in context, India’s 10-year G-sec yield rose by 1.2%, whereas the US 10-year treasury yield increased by 2.7%. This difference may be attributed to higher US inflation (above 8%) when compared to that of India (around 7%). Moreover, this is accentuated as the US Fed has a lower inflation target compared to that of the Reserve Bank of India (RBI).