New Delhi, Oct. 4 -- Rising global bond yields are making capital more expensive for emerging markets, but India's macroeconomic stability and record foreign direct investment inflows reflect continued investor confidence in the country's fundamentals, Anuradha Thakur, Secretary, Department of Economic Affairs, Ministry of Finance, said.

Speaking at the Kautilya Economic Conclave, Thakur said global bond markets were becoming increasingly important in determining the cost of capital as governments borrow heavily and investors demand greater compensation for inflation, fiscal uncertainty and duration risks.

"Bond markets have always been important, but are resuming a larger and larger share of it. Government bonds alone now amount to mor...