The US bond market is showing signs of stabilization after a two-month period of selloff, characterized by increased investor activity as yields test new peaks. Factors contributing to the rise in 10-year Treasury yields include Donald Trump's presidential victory, persistent inflation, and robust economic data.
In emerging markets, a rally in junk bonds is underway, potentially serving as a temporary reprieve between ongoing debt crises. A Bloomberg index tracking high-yielding sovereign dollar debt is on track for a 15% increase this year, marking the largest annual gain since 2016. Countries like Argentina, Sri Lanka, and Ghana are attracting global investors due to their recovery from defaults and implementation of economic reforms, despite the recent volatility in US yields.