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Podcast: My Worst Investment Ever Podcast
Episode: ISMS 4: Bond Yields Are Showing the Fed Has Won Its Battle Against Inflation
Description: EM don’t have reserve currency status, unlike DM they never benefited from zero ratesOver the past 12 months, the World average 3mth gov’t bond rate rose from 1.7% to 5.0%That 3.3ppts rise highlights the rising interest rate environment we have been living throughIn the Developed markets 3mth rates rose from zero 12 months ago, before the Ukraine war started, to the current 3.3%Despite this strong rise, DM’s interest rates remained at a 1.7ppt discount to the world averageMeaning EMs were rising equally fastSo, let’s look at EMsOver the past year, 3mth rates rose from an already high 4.3...