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Taking stock of the 10Y yield moves thus far this year, very few economies were able to resist the pull of higher rates. Notwithstanding the breather overnight, developed market 10Y yields have generally risen by an average of 49bps ytd. Most of this can be attributed to a repricing higher in growth and inflation expectations in the US. As yields in the US rose, DM yields, which are highly correlated together, got dragged up accordingly. Typically, we would expect JGB yields to be the laggard. However, at this part of the cycle, the SNB, having already begun the easing cycle, is the most dovish, helping to keep a lid on yield increases.
With the emerging markets, stresses have appeared within the govvie and FX spaces. Local currency government bond yields have pretty much tracked US yields higher as a strong USD weighed on sentiment. Within Asia, 10Y CGB is the top performer, bucking the trend and registering a 30bps decline in yield. While there are sporadic bouts of concerns on the RMB, CGB yields have been consistent in reflecting growth worries on the economy. Meanwhile, IGBs are also holding up very well, with 10Y yields flattish ytd. Some of this can probably be attributed to tailwinds arising from India’s eligible bonds being included into the JPM-EM index (starting in June 2024) and Bloomberg’s EM Local currency Index (starting in January 2025). Within Asia, we reiterate our view that 10Y SGS is attractive given how much yields have ran up. 
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