Cover IMF Working Papers
Buy Book in Print
Bond Yields in Emerging Economies: It Matters What State You Are In
Author:
Laura Jaramillo
Search for other papers by Laura Jaramillo in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2012: Issue 198
Language:
English
Publication Date:
01 Aug 2012
DOI:
https://doi.org/10.5089/9781475505481.001
ISBN:
9781475505481
ISSN:
1018-5941
Pages:
25
Keywords:
WP; bond yield; emerging market; Bond Markets; Emerging Market Economies; Fiscal Deficit; Public Debt; domestic bond yields; growth rate; growth expectation; fund assets; estimation result; growth projection; long-term bond yields; Bond yields; Government debt management; Emerging and frontier financial markets; Securities markets; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.7 MB) Download Epub
While many studies have looked into the determinants of yields on externally issued sovereign bonds of emerging economies, analysis of domestically issued bonds has hitherto been limited, despite their growing relevance. This paper finds that the extent to which fiscal variables affect domestic bond yields in emerging economies depends on the level of global risk aversion. During tranquil times in global markets, fiscal variables do not seem to be a significant determinant of domestic bond yields in emerging economies. However, when market participants are on edge, they pay greater attention to country-specific fiscal fundamentals, revealing greater alertness about default risk.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund