EM assets head for worst month since US-Iran war as yields spike, Hormuz risk persists

Emerging market assets are extending a sell-off amid rising US Treasury yields and persistent Strait of Hormuz uncertainty, on track for their worst month since the US-Iran war rattled markets in March. The combination of higher global rates and geopolitical risk is pressuring EM currencies and debt. The magnitude of outflows and the duration of the sell-off remain uncertain.