Emerging Market Local Currency Review - 3rd Quarter 2017
The most widely followed emerging market local currency benchmark, the JP Morgan GBI-EM Global Diversified Index (the "Index") returned 3.55% for the 3rd quarter of 2017 bringing the year-to-date return to 14.28%. The yield on the Index fell 16 basis points (bps) to 5.99% at the end of the quarter while the yield on 5-year maturity U.S. Treasury bonds rose 5bps to 1.94%.

Of the Index's 14.18% year to date return, more than half or 8.02% has come from the domestic Treasury bonds, comprising yield earned as well as the decline in the bond yield of the Index. The remainder of the Index's return came from strengthening emerging market currencies versus the U.S. Dollar (USD) over the period. Broadly though, both domestic bonds as well as emerging market currencies have enjoyed positive momentum since the start of the year.

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Posted on Monday, November 6, 2017 @ 12:24 PM

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.