The U.S. tapering narrative is attempting a comeback, but the real rates differentials between some EMs and the U.S. look much more attractive now.
A low base effect pushes EM headline inflation higher. Central banks consider it transitory – can global cost-push pressures be a game-changer, causing local yield curves to re-steepen?
China’s exports beat consensus, but its global exports share is set to decline as other EM benefit from the re-opening. Mexico’s inflation jumped higher, reinforcing expectations of a rate hike.