Emerging-market jitters weaken bonds following Donald Trump’s comments
The rise in the US 10-year treasury to a seven-year high of 3.1122% has set the scene for another round of emerging-market weakness
South African government bonds were weaker on Friday, as the benchmark R186 yield rose above the crucial 8.5% level, on a sharply weaker rand.The yield on the R186 fell below 8% to 7.9% earlier in the year as prices rose on foreign inflows, which are now reversing.Negative emerging-market sentiment, together with a firmer dollar, drove the rand to a five-month low against the greenback as foreign investors continued to de-risk.The rise in the yield on the US 10-year treasury to a seven-year high of 3.1122% set the scene for another bout of emerging-market weakness, made worse by jitters surrounding the ongoing trade talks between China and the US as well as turmoil in Turkish markets.Earlier, President Donald Trump toned down remarks in which he mentioned that the US might consider the "Libyan option" and "decimate" North Korea. This drew sharp reaction from Korean leader Kim Jong-un ahead of their scheduled meeting on June 12 in Singapore.Media reports that Beijing will offer the T...
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