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Emerging markets jitters are back – Sober Look

This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

The combination of higher than expected 3d quarter US GDP (see story) and surprisingly strong payrolls report (see story) have reignited fears of near-term Fed “taper”. And that in turn has woken up emerging markets bears that have been absent in recent weeks. From India to South Africa, currencies weakened once again and emerging markets bonds sold off. Brazil’s 5-year and 10-year government bond yields hit a new recent high, both breaching 12%, while Bovespa gave up 4% in the past 3 days.

Brazil 10-y government bond yield (source: Investing.com)

Stay tuned.

SoberLook.com

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