Don't Panic. It's No Taper Tantrum, JPMorgan Tells EM Investors

Diana Amoa says synchronized growth will keep EM Healthy
Treasury yield surge knocks down EM bond index most since May

Christopher Verrone, head of technical analysis at Strategas Research Partners, says we are in a bond bear market.(Source: Bloomberg)

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By Selcuk Gokoluk

February 5, 2018 at 12:05 PM UTC

Updated on

February 5, 2018 at 9:01 PM UTC

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Emerging-market investors shouldn’t expect a repeat of the 2013 taper tantrum as Treasury yields climb, JPMorgan Asset Management said.

Local-currency and dollar-bond indexes for developing nations fell the most since May on Friday as the highest 10-year Treasury yields in four years sparked a selloff in stock markets. While the Fed is poised to push on with rate hikes, the difference this time round is that it’s not just the U.S. that’s enjoying an economic revival.