David Eaves informed that UK based users who are trying to reach Yahoo.com now being redirected to Yahoo! UK domain.
Flyerguy a memebr of Webmaster World has also confirmed in his post that German users are also redirecting to Yahoo! German domain.
According to Barry Schwartz this has to do with Yahoo Now Showing Geo-Location Under Search Ads. Yahoo has told him that they rolled out that feature last "week with the roll out of a new "geo labels" feature." He feels that same geo-technology was applied to this.
But in India I am still reaching www.yahoo.com domain instead of http://in.yahoo.com but last few days it is showing two search options Search Web and Search India. That wasn't before.
If you seach with any of the option, Yahoo shows &fp_ip=IN in its search result URL. In India, www.yahoo.com is not redirecting yet but search results are fetching from Indian IP addresses.