- A global bond selloff spread to emerging markets as prospects for a Federal Reserve rate hike overshadowed Iran conflict and artificial-intelligence volatility as the main sentiment driver.
- Money markets indicated an almost 70% chance of a 25-basis-point Fed rate increase on Sept. 16 after Chair Kevin Warsh said US inflation was not slowing meaningfully.
- Ten-year government bond yields rose from South Africa to South Korea and Poland, signaling broader duration pressure across emerging-market debt.
Quotes
“inflation isn’t slowing meaningfully and may require action from the Fed.”