Bond yields are a critical aspect of financial markets, representing the cost of borrowing for governments and corporations. A bond is a debt instrument where investors lend money in exchange for regular interest payments and the return of principal at maturity. The yield on a bond, expressed as a percentage, indicates the return investors can expect based on the bond's current market price. As market prices fluctuate, so do yields, which inversely relate to bond prices. Factors influencing bond yields include inflation expectations, central bank policies, and government borrowing levels. Rising yields can indicate tighter financial conditions, leading to increased borrowing costs for governments and companies, while falling yields often suggest easing conditions. In India, the 10-year government security yield is closely monitored, particularly in relation to the US Treasury yield, which serves as a global benchmark. Investors should keep an eye on various economic indicators, including inflation trends and liquidity conditions, as these can significantly impact bond yields and overall market dynamics.