Fed easing anchors US yields, boosting Brazil and Mexico sovereign debt appeal as FX upside fades - VT Markets
Fed easing anchors US yields, boosting Brazil and Mexico sovereign debt appeal as FX upside fades - VT Markets
Source: VT Markets
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DW NOTE
The Fed cut rates twice this year and 10-year yields are still at 4.68% — 120 basis points above the funds rate. That inversion isn't easing, it's the market pricing sustained inflation risk. If Brazilian and Mexican sovereigns look appealing now, it's because real rates in the U.S. have turned unattractive, not because emerging market fundamentals improved.