How did the global debt market behave in May-21?

Last updated: 09 Jun, 2021 | 03:11 am

How did the global debt market behave in May-21?
  • Unlike the previous months, Bond Yields cooled off across all the markets moderately, as apprehensions over the pace of economic rebound weighed.
  • While the economic reopening is leading to recovery, but supply chain issues and increase in raw material costs are throttling the pace of rebound. 
  • This fuelled safe-haven demand for government securities, tempering their yields. Additionally, the asset purchase programme by the central banks has been limiting the rise in yields across economies.
  • Although yields came off from the highs touched in Mar-Apr’21, it continues to be well above the pre-pandemic levels across economies.

Impact on debt funds in India

  • Due to their higher sensitivity to yield changes, longer duration funds have been impacted in the last one week period. 
  • India’s 10-year benchmark bond had trended slightly upward towards the end of the month. This has led to funds with higher duration seeing negative returns in the period.
  • Money Market, Ultra-short, Liquid Funds have remained largely unaffected to changes in yields due to their lower duration.


Stick to high-quality AAA-rated low-duration funds and bonds. Prefer safety over high yields in this volatile market. In fixed income securities, high risk does not mean higher returns.

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth,,, makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id:, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]