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EM 10Y Real Yields: CEE Region At The Bottom Of The League

EMERGING MARKETS
  • The chart below ranks the 10Y real yields among the most liquid EM economies, adjusted by sell side 2021 CPI forecasts.
  • The CEE region remains at the bottom, with Poland currently offering the lowest 10 real yield among the EM world at -1.35%, followed by Hungary -0.81% and then Czech Republic (-0.49%).
  • At the top, South Africa is leading the EM 10Y real yield 'league', offering 5.05% when we adjust the 10Y nominal yield by the 2021 CPI forecasts. Sell side institutions are expecting CPI inflation in SA to average 4.1% and 4.3% in 2021 and 2022, respectively.
  • Indonesia and Brazil are then the other two EM economies offering the highest 10 real yields (4.2% and 4.1%, respectively).

Source: Bloomberg/MNI

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