- Average 10-year emerging market bond yields have almost doubled since 2021
- The Brazilian and South African economies face difficult debt dynamics
As US interest rates rose from almost zero to 5.25-5.5 per cent, government borrowing costs soared too. As the chart shows, the yield on a 10-year Treasury hit 5 per cent in October, and stands at around 4 per cent today. So far, so familiar. But less well-worn is the impact that this is having on emerging market (EM) bond yields.
