Emerging-market stocks and currencies fell for a fourth session as rising global bond yields and oil prices kept riskier assets under pressure. An MSCI Inc. gauge for developing-nation currencies was down 0.3% as of 12:30 p.m. in New York Tuesday. South Korea’s won underperformed, offsetting gains in some Latin American currencies including Chile’s peso.

The 10-year US Treasury yield rose to the highest in almost two decades as a jump in energy prices fueled inflation concerns. That’s adding to pressure on emerging-market assets ahead of the Federal Reserve’s interest-rate decision on Wednesday, when investors expect officials to raise short-term borrowing costs for the first time since July 2023. Markets are essentially priced for a 25 basis-point hike but there is still some uncertainty around what the path looks like after tomorrow, said Brendan Mc Kenna, a strategist at Societe Generale in New York.

That uncertainty might get Lat Am FX moving sideways until we get some more clarity. In credit markets, Gabon’s bonds surged after the government announced that an audit found the OPEC member’s debt stock stood at $16.7 billion, almost a fifth below an initial estimate. The Dominican Republic is offering to buy back some of its bonds coming due next year and said it’s seeking to sell new dollar-denominated notes.

Emerging-market equities fell to a three-week low. Black Rock Inc. strategists returned to an overweight recommendation on the asset class, betting that access to the scarce resources needed for the artificial-intelligence boom and strong earnings will drive outperformance.