Long-Term Investing
Investment insights from Capital Group
US real rate rises similar to the 2013 taper tantrum
US 10-year real yield
Data as at 26 May 2022. Source: Bloomberg generic 10-year real yield
G4 QE holdings compared to US financial conditions
12-month change, USD
Data as at 30 April 2022. G4: US, UK, Japan, eurozone. QE: quantitative easing. Sources: Bank of England, Bank of Japan, European Central Bank, US Federal Reserve, Goldman Sachs
EM real yield differential rising
EM real yields minus US real yields
Past results are not a guarantee of future results.
As at 26 May 2022. EM yields calculated using GBI-EM Broad Indices. US yield is the Bloomberg generic 5-year index. Inflation is core CPI for the individual countries. Sources: Bloomberg, Capital Group calculations
1. EM local bonds (GBI-EM Global Diversified Index) suffered a peak-to-trough return of -22% over three years from the 2013 taper tantrum. Source: JPMorgan
2. As at 20 May 2022.
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