- Emerging market growth and global growth are doing very well (The IMF forecast that emerging market growth in this year and next year will be around 4.9%, and global growth will be around 3.9%. )
- We still have decent yield pick-up over the US (3% in US yields, but 6% on average in emerging market government bonds dollar)
How emerging markets are dealing with higher US Treasury yields
The recent rise, through 3%, and to the highest level since 2013, has triggered a bit of a sell-off in emerging market assets. We’re thinking that US Treasury yields from here stabilise or they rise only gradually, and this’ll allow emerging market asset prices to go up again.