Stock market latest news: Amid a poor show by the key benchmark indices of the Indian stock market for the last two years, Chris Wood of Jefferies has lit a ray of hope for the bulls of Dalal Street. The Head of Equity Research at Jefferies has been quite vocal about the single trigger that may fuel a fresh bull trend in the Indian stock market.
The single trigger is the manipulation or suppression of US bond yields, rather than fixing them, as the Japanese government did in 2016. One hint about such a move in the US bond market, Chris Wood of Jefferies told LiveMint in an e-mail reply, the US 10-year bond yield will be actively suppressed, if not fixed, at some point between 5% and 6% on the 10-year Treasury.
US 10-year bond yield | When will suppression begin?
On when suppression of the US 10-year bond yield may begin, Chris Wood, Head of Equity Research at Jefferies, said in reply to LiveMint’s email, “My guess is that the 10-year yield will be actively suppressed, if not fixed, at some point between 5% and 6% on the 10-year Treasury. This has been my view for the last few years.”
Chris Wood believes the structural growth story of the Indian equity market remains intact. Recently, he told The BroadView that the Indian equity market has been underperforming for the last two years due to the AI boom. Due to the AI boom, foreign capital began shifting from the Indian stock market to the South Korean and Taiwanese stock markets. This triggered a robust rally in the South Korean and the Taiwanese stock markets. However, when the crash began in Asian markets following the AI slowdown buzz, US Treasury yields started to skyrocket. So, that money started to shift from these Asian markets to the US bond market.
Why would the US government suppress the 10-year bond?
Chris Wood of Jefferies believes the soaring US 10-year bond yield is expected to aggravate the US debt crisis, which crossed the $40 trillion mark in August 2026. He has been quite vocal about the manipulation in the US bond market, saying, “The 10-year bond yield crossing the 4.50% yield per annum was the yellow flag, and once it crossed the 5% mark, the red flag got automatically on.”
How US bond market top linked to India’s market bottom?
Chris Wood of Jefferies believes, “Correction in the US bond market would weaken the US Dollar (USD). This would strengthen the Indian National Rupee (INR) against the USD. The Indian Rupee gaining against the USD would be a good indicator for attracting foreign money to the Indian equity market.”
As the structural growth story of the Indian stock market, like rising GST registration, rising commercial vehicle sales, blockbuster GDP growth of 7.80% in Q1FY27, rising government’s capital expenditure, SIPs hitting record highs, etc., is enough to reflect the strength available in the Indian economy to cash on this trigger in the US bond market.
In his advice to Indian stock market investors, Chris Wood told LiveMint, “All Indian investors have to do is to keep an eye on the 10-year, which is the most important price in world financial markets.”
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
