Taper Tantrum Haven May Be Found in Emerging Markets, BofA Says
- Fed may announce its taper plans in September, MacFarlane says
- Developing-nation euro bonds outperformed dollar debt in 2013
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Emerging-market euro-denominated bonds may offer investors a refuge from a potential surge in U.S. yields in the second half of the year, according to Bank of America Corp.
The Federal Reserve may announce plans to taper its massive bond-buying campaign in September, Bank of America’s London-based strategist Andrew MacFarlane said in a report. The bank predicts that could fuel a jump in Treasury 10-year yields to 2.15% by the end of the year, from around 1.62% Tuesday. In comparison, it sees euro yields remaining stable.