Bond yields used to be the place in the market people looked between stock headlines. That habit is costly now. Investors are most underweight bonds since June 2022, but developed-market government bond funds still drew fresh money, Reuters reports. The problem is returns have been poor – 10-year Treasuries and German Bonds have produced negative returns since late February while equities have continued to rally in parts of the market. Reuters also noted that US ten-year Treasury yields above 4.5% are now viewed as a critical level, above which higher yields begin to have a more direct negative impact on equities. This is important for NRIs and HNIs because the fixed-income sleeve is no longer automatically “safe”. Duration risk, inflation risk, currency risk, liquidity risk can pile up on each other very quickly. A serious bond yield risk strategy 2026 must assume government bonds, sovereign debt funds and even supposedly defensive fixed-income portfolios can reprice in ugly ways if inflation or geopolitics worsen. Reuters’ India coverage shows the other side of the same trade: foreign investors have started to buy short Indian government bonds as the front-end offers better risk-adjusted carry while the long-end remains more exposed to repricing.