Taper Tantrum Ends as Emerging Bonds Top World: Chart of the Day
This article is for subscribers only.
Concern that reductions in Federal Reserve stimulus will undermine emerging markets has evaporated as historically low yields in developed countries lured investors to riskier assets.
The CHART OF THE DAY shows the premium investors demand to own developing-nation bonds over their more advanced peers fell to 252 basis points on June 9, the least in more than 16 months. The spread was at 271 basis points on May 21, 2013, the day before then-Federal Reserve Chairman Ben S Bernanke said the central bank was considering cutting its bond-purchases program, and soared to a 2014 high of 365 basis points in February.