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10Y Real Yields: Malaysia Joins China and CEE at The Bottom of The League

EMERGING MARKETS
  • Indonesia is currently the place that offers the highest 10Y real yield among the EM world (5%), after inflation in South Africa surged to 4.4% in April (10Y real yield in SA is slightly lower at 4.85%).
  • Brazil 10Y real yield is still standing at 2.6% despite rising inflationary pressures.
  • China remains at the bottom of the league, currently offering a 10Y real yield of -3.7% (we use PPI for China instead of CPI as it shows stronger relationship with the 10Y yield).
  • Malaysia is now also offering a negative 10Y real yield of -1.5% after CPI inflation soared from 0.1% to 4.7% between February and April.
  • The CEE region remains at the bottom of the league with Poland offering the second lowest 10Y real yield among the EM world (-2.5%).
  • The chart below ranks the 10Y real yields among the most liquid EM economies, adjusted by headline CPI.

Source: Bloomberg/MNI

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