Emerging market bond spreads advance most in five years

The spread of the J.P. Morgan EMBI Global relative to comparable U.S. Treasury securities increased 8.9% to 406 basis points at the close of business Nov. 14. It marked the largest single day increase in five years, and the third largest since the end of 2008. The increase was more of a function of increasing emerging market yields than a decline in U.S. Treasury yields, which backed off modestly after moving sharply higher following the election.

Emerging market debt yields, as measured by the J.P. Morgan EMBI Global Core, advanced 7.3% during Monday's trading, and 12.3% since Nov. 9, as the possibility that the new U.S. administration would impose protectionism policies on U.S. imports.

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