Emerging Rates Most at Risk as U.S. Yields Reach 10-Month High
(Bloomberg) -- The reflation trade driving a sell-off in Treasuries will have investors watching to see if this results in a spike in emerging-market yields. The pace of any such yield surge carries far more weight for developing-nation bonds than the levels reached.Bonds from Indonesia, Mexico and Malaysia are the most vulnerable to sudden surges, because they historically have fiscal and/or current-account deficits, or both, according to a Bloomberg study of 15 emerging markets. In contrast, sovereign securities from South Korea, the Czech Republic, Poland and Thailand -- all of which have o...