The strength of the yen and possible turbulence in the U.S. mortgage market will likely be the main concerns of emerging debt investors this week, as high-yielding bonds try to consolidate their recent recovery.
The Japanese currency is right now the main source of uncertainty: should it keep erasing recent gains, short-term investors who take advantage of the carry trade may feel comfortable to fully return to the market, analysts say.
If the yen starts strengthening again, however, it could become too expensive for investors to keep borrowing on the safe currency in order to invest in high-yielding assets.
Read more at Reuters.com
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