Emerging market bond rally comes under threat

In Asia, Thailand’s policymakers kept rates on hold last week after inflation quickened, while their peers in Taiwan boosted the reserve requirement ratio for banks in a form of policy tightening.

NEW YORK: The balmy days of dovish monetary policy that fuelled a rally in emerging market bonds looks to be over as central banks across the developing world turn more hawkish.

Returns from emerging market local currency debt are trailing their US dollar-denominated peers by the most in two years as resurgent inflation has damped the prospect of further interest rate cuts in Latin America and Eastern Europe.