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Expertise 02.05.2018

How emerging markets are dealing with higher US Treasury yields

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.


  • 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)
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Expertise 02.05.2018

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.

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Expertise 02.05.2018

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.

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Confidence has returned to the markets and the beginning of the earnings season looks great, with several positive surprises. The IMF has presented its outlooks for 2018 and 2019 and they seem very upbeat: world growth is expected to come in at 3.9%.

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