In a Sea of Red, Two Emerging Markets Stand Out as Vulnerable
- Colombian, Brazilian bonds underperform Latam-market peers
- Both countries face divisive elections, widening fiscal gaps
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As the spike in U.S. Treasury yields turns bond trading screens red worldwide, two countries in particular face a stormy year ahead -- Brazil and Colombia.
Bonds in the two South American nations tumbled this month and are set to remain underperformers amid divisive elections, mounting fiscal debts and in the case of Colombia, a widening current account deficit.