LatAm assets pressured as surging US yields lift dollar
EWZ•Most Latin American assets fell as the 10-year US Treasury yield reached 5.34%, its highest since 2002, and the dollar rose to its highest since mid-May 2025. MSCI Latin American stocks dropped 0.89% and currencies fell 0.67%.
1. Yields pressure markets
Most Latin American assets came under pressure as rising Treasury yields lifted the dollar and prompted investors to pull back from risk-sensitive emerging-market assets. The 10-year Treasury yield rose to 5.34% before easing to 5.30%, while the dollar index gained 0.31%. Brent crude rose 3.2%.
2. Regional moves
Brazil’s real weakened 0.5% ahead of Sunday’s presidential vote, and the Ibovespa edged 0.1% lower. Mexico’s peso fell 0.9% to its lowest since December 2025, while Chile’s peso dropped 1.2% to its lowest since July 2025 after economic activity fell 1% year over year in August. Moody’s raised Bolivia’s sovereign rating for the second time this year, citing a material decline in credit-event risk.
