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Emerging Market Local Currency Review - 2nd Quarter 2018
The JP Morgan GBI-EM Global Diversified Index (the "Index") returned -10.40% for the 2nd quarter of 2018 as emerging market ("EM") assets came under increasing pressure. The yield on the Index rose 59 basis points (bps) over the quarter to 6.59% while similar duration 5-yr maturity U.S. Treasury bond yields rose 18bps to 2.74%.
A significant contributor to the weaker quarterly returns came from weaker emerging market currencies versus the U.S. dollar. These weaker currencies on average contributed -8.34% to the Index return. Higher emerging market bond yields contributed to the remaining negative returns.
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Monday, August 13, 2018 @ 12:02 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.