Transmission of U.S. Long-term Rate to EM Local Currency Sovereign Bonds: The Role of the Investor Composition - International Monetary Fund | IMF
Transmission of U.S. Long-term Rate to EM Local Currency Sovereign Bonds: The Role of the Investor Composition - International Monetary Fund | IMF
Source: International Monetary Fund | IMF
―
DW NOTE
The IMF is studying how US rate changes transmit to emerging market local-currency bonds based on who owns them. Translation: they want to map which holders panic first when yields spike. The Fed just pushed rates to 3.75%-4.00%, the 10-year Treasury is at 5.24%, and EM sovereigns with the wrong creditor mix are about to find out what transmission really means.