The end of the calm before the storm

Witness the discontent in emerging markets, signs of turbulence spreading to advanced economies and worries over Italy’s eurozone performance

The summer of emerging markets discontent has been rolling from Turkey to Brazil, across Argentina and Russia, sweeping along the likes of Indonesia, Thailand, Chile and Mexico. Yet below the surface of these stormy seas, a potentially more sinister turbulence is taking hold. Since the start of 2018, global interest rates and, increasingly, bond yields, have been flashing red, as volatility in advanced economies’ markets slowly ebbs up.

US debt markets and volatility