Rising U.S. Treasury yields are starting to concentrate minds in the world of emerging markets.
Developing-nation local-currency bonds had their worst week since September in the five days through Friday, while dollar debt slipped by the most since January as surging inflation expectations fueled a rout in Treasuries. The selloff in the world’s largest bond market also sent implied volatility for currencies and stocks to the biggest weekly increase this year. Even so, exchange-traded fund investors looked past the increase in U.S. yields last week and continued to pour money into emerging markets.
