Update
BofA GEMs Perspective: US Treasury Bond Sales Impact Emerging Markets
BofA Global Economics and Markets (BofA GEMs) has analyzed 33 Fed-driven interest rate shocks since 2013. They found that a single price increase of historical tension in US Treasury bonds could lead to a 50 to 60 basis point revaluation within a 30-day period, along with a strong dollar and lower S&P 500. The EMBIG (Emerging Markets Bond Index) yield above 8% indicates capital outflows, with 8.8% marking capitulation. As long as the EMBIG yield is below 8.0%, investors are attracted by high carry.