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Bond mkts in India, S Korea most vulnerable to sell-off in the region's EMs

Bond markets in the two countries are at opposite ends of the investment spectrum

Bloomberg
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Inflation in South Korea and India -- one a tech exporter and the other a services and agriculture-driven economy -- is heavily influenced by rising energy prices (Photo: Bloomberg)

Marcus Wong | Bloomberg
Bond markets in South Korea and India are the most vulnerable to a sell-off in the region’s emerging markets, even if they’re typically at opposite ends of the investment spectrum.
 
Inflation in these two nations -- one a tech exporter and the other a services and agriculture-driven economy -- is heavily influenced by rising energy prices given how much they import. Their bonds also have a higher sensitivity to U.S. inflation breakevens than others, according to data compiled by Bloomberg News.

Graph

 
Rising price pressures have