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EM 10Y Real Yields, Adjusted by Core and Headline CPI

EMERGING MARKETS
  • CEE countries currently offer the lowest 10Y real yields among the EM world, with Poland sitting at the bottom of the table with -2.1% (adjusted by core CPI) and -1.6% (adjusted by headline CPI).
  • With inflation in CEE expecting to continue to rise sharply in the coming months amid surging fuel prices and further increase in excise duties, real yields could decrease to even lower levels if the 10Y nominal yields remain steady as central banks leave interest rate unchanged to stimulate growth.
  • On the other side, it is interesting to see that South Africa currently offers the highest 10Y real interest rate at 6.4% (headline CPI) and the ZAR keeps appreciating against major crosses.

Source: Bloomberg/MNI

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