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Emerging Markets Bond Selloff Driven by Fed Rate Hike Speculation

Bloomberg Markets •
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A global bond selloff has spread to emerging markets as investors dump riskier debt. Ten-year government bond yields rose across regions from South Africa to South Korea and Poland. Money markets indicate an almost 70% chance of a 25 basis-point increase in the Federal Reserve's benchmark rates on September 16.

The shift reflects heightened expectations of tighter US monetary policy. Bloomberg Terminal data shows the contagion affecting multiple sovereign debt markets simultaneously.