New Delhi, Aug. 21 -- a cynic is someone who knows the price of everything and value of nothing. The world's most watched price, what it costs to borrow money, serves as a reminder of Wilde's wit every now and then.

This week, eyes were drawn to the land of easy capital, the US, as its federal government's debt leapt past $40 trillion, bonds issued by it saw yields rise (on a sell-off) and its Treasury department said it would double buybacks of its long-dated paper.

Since these T-bonds are 'risk-free' assets and their yields set the floor for interest charges on risk-laden long loans-like home mortgages-their rise signals costlier credit.

Bulk-buying US paper to raise their market prices is a way to calm yields down (as a higher price...