Following the conclusion of the High Yield month, we have now entered September, during which three central bank rate meetings have recently taken place. Federal Reserve Chair Jerome Powell emphasized on Wednesday that the central bank is nearing the end of its interest rate hikes. However, his colleagues also conveyed a message: In light of the renewed strength in the economy, it is necessary to maintain higher borrowing costs for an extended period. The Fed is likely to implement one more interest rate hike in 2023. Subsequently, we have observed a deterioration in the bond market, characterized by increasing yields.
In addition to the impact on domestic markets, we have also witnessed the repercussions extending to Emerging Markets (EM). In the following discussion, we will delve further into this matter.
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