The rise in yields has been backed by positive overall labor reports flooding the U.S. markets, such as the Labor Department revealing today that job growth in the month of September retreated to its lowest level in the past 12 months, but the unemployment rate fell to its lowest level in almost 50 years. Nonfarm payrolls gained 134,000, which was over 50,000 jobs below the Refinitiv estimates of 185,000, but the unemployment rate fell to 3.7 percent, which was one-tenth of a percentage below initial forecasts.

Even if U.S. equities continue to correct, rising Treasury yields could continue to divert attention from emerging markets and thus, benefit EDZ. Even if markets do stabilize, there are EM detractors who are still wary of investors diving in just yet.

“Despite the recent EM stabilization, we recommend resisting the instinct to ‘buy the dip’,” Barclays analysts wrote in a note. “We do not believe that the elements that warrant a more cautious approach towards EM have dissipated.”

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