EM Sovereign Bond Selling Accelerates After Fed, BNY Says
Sovereign bonds from commodity-based emerging markets saw accelerated selling after the Fed decision, even as the dollar weakened and US real yields fell, according to BNY’s Geoff Yu.
BNY’s Geoff Yu reports that a steepening Treasury curve is reducing the appeal of emerging-market sovereign debt. The pressure is most visible in bonds from commodity-based EM economies, which have seen accelerated selling after the Federal Reserve’s latest decision.
That selling has occurred even as the US dollar weakened and US real yields declined, indicating the Treasury curve move is outweighing those typically supportive factors.
Source: FXStreet Forex News