Emerging markets stare at higher interest rate as bond yields spike in US

The bond yield in the US reached a two-year high on Friday as the market positioned for monetary tightening and an interest hike by the US Federal Reserve (Fed). The yield on the benchmark 10-year US bonds made an intraday high of 1.8 per cent on Friday, while it closed the day at 1.765 per cent - the highest since January 22, 2021. With this, the US bond market has given up all gains it made from the ultra-low interest rate policy initiated by the Fed after the Covid-19 pandemic break-out in early March 2020.

The yield on the 10-year US