Rising Bond Yields In Emerging Markets

Since the end of the global recession in 2009, yields on emerging market bonds have headed ever lower, with historical lows recorded earlier this year in Poland, Mexico, Turkey and South Africa.  In recent weeks, however, yields have risen sharply across the board. This move is in line with Business Monitor’s view that a recovering US economy – and thus the expected reduction of quantitative easing by the Federal Reserve  – would eventually signal an end to the emerging market bond rally. In this week’s podcast Tim Cooper, our global chief economist, discusses rising bond yields with Richard Hamilton, the head of Europe country risk and financial markets, and Mark Schaltuper, our head of Americas country risk and financial markets.