As Azous notes, investors can pick their poison by blaming the BIS paper or the greenback’s ascent for the weakness in emerging markets bond funds, including EMB, but the bottom line is the charts are not pretty and that is what matters most.
“EMB has fallen rather sharply in recent sessions on heavier than average volume, plunging dangerously through its 200 day MA. The fund’s yield has risen to 4.23% and investors have recently pulled $250 million from the fund,” said Street One Financial Vice President Paul Weisbruch in a note out Wednesday.
EMB Technicals
Charts Courtesy: Neil Azous, Rareview Macro
Tom Lydon’s clients own shares of EMB.