Q4 2023 Emerging Markets - Market Review and Outlook

Q4 2023 Emerging Markets - Market Review and Outlook

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Investment Grade Portfolio Team
DEC 31, 2023

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As 2023 is put in the rearview mirror, it is a time to reflect on trials and challenges faced over the last year. On paper, the 10-year US treasury ended the year at 3.88%, less than one basis point higher thanwhere it started. However, it witnessed an intra-year range of 168 basis points as the lows from the March banking crisis (3.30%) were soon overshadowed by stubborn inflation data, with the October peak hitting 4.998%1. Emerging Markets (EM) indices’ returns were strong, despite bouts of weakness in February andSeptember, posting monthly returns anywhere from -3.37% to +5.66% during the year2.