Emerging Bonds Plunge Most in 13 Months; Stocks, Forint Tumble
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Emerging-market bonds plunged the most in 13 months as credit-rating cuts for Greece and Portugal added to concern that indebted European nations are moving closer to default, spurring a selloff in riskier assets.
The 1.1 percent retreat in JPMorgan Chase & Co.’s EMBI+ Index of developing-nation debt sent the extra yield investors demand to own the securities over U.S. Treasuries up 20 basis points to 2.63 percentage points, the highest since March 22. The MSCI Emerging Markets Index of shares dropped 1.5 percent as of 5 p.m. in New York, the most in six days, while Hungary’s forint weakened the most against the euro since June 2009.