The combination of higher than expected 3d quarter US GDP (see story) and surprisingly strong payrolls report (see story) have reignited fears of near-term Fed "taper". And that in turn has woken up emerging markets bears that have been absent in recent weeks. From India to South Africa, currencies weakened once again and emerging markets bonds sold off. Brazil's 5-year and 10-year government bond yields hit a new recent high, both breaching 12%, while Bovespa gave up 4% in the past 3 days.
|Brazil 10-y government bond yield (source: Investing.com)|
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