Fed Rate Hike Bets Spark Global Bond Selloff in Emerging Markets

A global bond selloff has spread to emerging markets as investors dump riskier debt in anticipation of a US Federal Reserve interest rate hike later this month.

The losses swept across regions, with 10-year government bond yields rising from South Africa to South Korea. This follows last week's comments from Fed Chairman Kevin Warsh that US inflation isn't slowing meaningfully and officials may need to act.

Investors are increasingly betting on a rate hike as the market becomes more uncertain about the Fed's next move. The selloff is particularly concerning for emerging markets, which often rely heavily on foreign investment to finance their governments' activities.