Wall Street lenders bought a significant portion of Indian banks' certificates of deposit in recent weeks after yields surged, according to sources. This sudden demand reflects investors' search for higher returns amid rising interest rates in India.

The purchases suggest confidence in the stability of Indian banking institutions despite global market volatility. Yields jumped sharply, making these short-term instruments attractive to yield-hungry investors. The move indicates a potential shift in global capital flows toward emerging markets offering better compensation for risk.