Sun setting on emerging market bonds

Sunset i

Once seen as the hero of the investment community, emerging market bonds have completed 5 waves up from the Oct 2008 low, which is in turn a 5th Wave of a larger degree. This 5th wave up was fueled by the Federal Reserve cutting interest rates to zero, which in turn gave rise to a…

  • Apr 27, 2014
  • Asia, EMB
  • Comments Off on Sun setting on emerging market bonds

US Treasuries point to deflationary times ahead

Hot air balloon deflating

If we take a look at the long term US 10-yr Treasury Chart we can see that ever since the rampant inflationary period of the early 1980s the 10-yr yields have been in a downward trend. Since hitting an all-time low of 1.4% in Aug 2012, yields have more than doubled, touching its long-term trendline…