US Treasury (10 Yr Generic) Watchlist
How Are Fed’s Rate Hikes Impacting EM?
FX & Rates
189 Views, 12 May 2022 22:19
- Notwithstanding the economic uncertainties, with the Fed’s path better defined now than a few weeks ago, I expect the volatility of rates to peak in the coming weeks.
- Uncertainty around the Fed's rate hikes has been spilling over to the monetary policy paths of EM countries even though many of them have been raising rates since last year.
- If the US rates volatility falls as I expect, then it will be supportive of the short ends of EM rate curves in Latin American and Central European countries.