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Joseph Cotterill
@jsphctrl.ft.com

Emerging-market domestic bonds are faring a lot better than many expected given the recent moves in US yields, and it is weirding people out a bit. Is it better EM fundamentals or is it reflecting how other risk assets like stocks haven't panicked yet? Both? www.ft.com/content/0f69...

ft.comEmerging markets outperform developed markets as bond rout deepensFiscal discipline, institutional strength and a willingness to fight inflation have shielded developing countries so far
Joseph Cotterill
@jsphctrl.ft.com

The Mexican peso, a classic EM proxy and/or carry trade for US investors in particular, is still down 6% against the dollar over the past month though. It probably doesn't help that in Mexico, rates are only about 2.5 percentage points over US rates at this point.

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