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Good things come in threes
Weekly investor research
30 April 2018
Good things come in threes. Emerging Markets (EM) bonds and currencies offer excellent value after a little panic among some retail and fast money investors as the 10-year US Treasury bond yield breaches 3%. Real yields are very high, currencies are competitive and the growth picture is solid. The Dollar trajectory has not changed either, in our view. External debt also offers a good entry point now. In EM specific news: Argentina’s monetary policy U-turn, peace in the Koreas, financial sector liberalisation in China, liberalisation of bond market access in India, stabilisation of oil production in Mexico, tighter liquidity in Turkey but with higher inflation and bond index inclusion for Dominican Republic.