Articles tagged with “emergingmarkets”

Sri Lanka's sovereign bond yields surged in April following U.S. President Donald Trump's announcement of 44 percent tariffs on the island nation, later suspended for 90 days. The yield on a 2028 bond dropped below 7 percent, while GDPlinked bonds due in 2030 and 2033 saw sharp increases, according to central bank data. Governancelinked bonds, previously trading around 1 percent, exceeded 11 percent. Sri Lanka's bonds, known for low liquidity, experienced significant volatility amid broader market pressures. Rising U.S. Treasury yields, driven by budget deficits and trade policies, further strained emerging market debt. Analysts note reduced foreign demand for U.S. Treasuries, particularly from China, which once held $1.2 trillion in U.S. debt but has since cut reserves to around $700 billion. The freezing of Russia's reserves also disrupted markets, forcing the Bank of Russia to float its currency at 22 percent interest rates.