Tantrum fears fade as riskier EM bonds rise to defy taper talk

Fixed-income securities issued by South Africa, Turkey, Indonesia and India posted the biggest gains among 46 sovereign markets, returning at least 1.2% last month, excluding currency fluctuations

Higher-yielding emerging-market government bonds outperformed their global peers in August, defying the prospects for higher borrowing costs as the Federal Reserve moves toward reducing monetary stimulus.
 

Fixed-income securities issued by South Africa, Turkey, Indonesia and India posted the biggest gains among 46 sovereign markets tracked by Bloomberg, returning at least 1.2% last month, excluding currency fluctuations. An index of global government debt lost 0.5%, while Treasuries fell 0.2%.

Concern about a possible rerun of the 2013 taper tantrum may have been overblown given the resilience shown by high-yielding emerging-market bonds even as Fed Chair Jerome Powell said last week the