EM stocks, currencies under pressure as US bond yields at 16-yr high

New Delhi: Asset classes across emerging markets took a dive and later recovered during the last week with stocks and currencies hitting multi-month lows pressured by an ongoing rout in global bond markets (30-year yields touching five per cent for the first time since 2007), said Deepak Jasani, Head of Retail Research at HDFC Securities.

US bond yields reach 16-year highs, challenging equity valuations and souring appetite for risk assets as investors bet interest rates will remain persistently high, he said.

In response to worries raised by an unexpected spike in the US job vacancies report, Indian markets fell by roughly 0.47 per cent, reaching a five-week low, said Vaibhav Vidwani, research analyst at Bonanza Portfolio.

The 10-year Treasury yield rose to 4.8 per cent, its highest level since August 2007, as a result of this contributing to worries that the Fed would hike rates again this year, he said. Axis Bank, SBI, IndusInd Bank, NTPC and UltraTech Cement were the Nifty’s top losers, while Adani Enterprises, Nestle India, HUL, Eicher Motors, and HDFC Bank were among the top gainers.