A Growing Cohort of Emerging Debt Now Pays Less Than Treasuries
Commercial and residential buildings visible through the haze in Abu Dhabi, United Arab Emirates.
Photographer: Vidhyaa Chandramohan/BloombergA relentless rally is pushing yields on a growing number of emerging-market government bonds below those of US Treasuries.
About 2% of securities in a benchmark JPMorgan Chase & Co. index of hard-currency debt now offer yields below comparable Treasuries. While it’s a small portion of the index — mostly securities from China and a few United Arab Emirates notes — it’s uncharted territory, doubling from a year ago.