The rise in U.S. Treasury yields and the attendant strength in the U.S. dollar has caused a big unwind in emerging markets, as EM currencies depreciate against the dollar and higher-yielding EM government bonds look less attractive relative to Treasuries.

And here’s a a chart of how the Brazilian central bank is trying to push down the rise of the dollar, without success (see spikes).

Source: Business Insider

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One Response to Charts: An Emerging Market Bond Meltdown?

  1. FRANK STEIN says:

    Great charts. Yep, it does not look good for the Brazilians.

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