Global bond selloff on Sept. 1 as higher Fed-hike odds drags emerging-market debt, including South Africa
On Sept. 1, 2026 a global bond selloff spread to emerging markets after markets raised the odds of a U.S. September rate hike following Fed Chair Kevin Warshs hawkish comments. Investors dumped riskier debt, pushing government yields higher across EM curves, including South Africa's external sovereign curve.
The desk brief
On Sept. 1, 2026 a global bond selloff spread to emerging markets after markets raised the odds of a U.S. September rate hike following Fed Chair Kevin Warshs hawkish comments. Investors dumped riskier debt, pushing government yields higher across EM curves, including South Africa's external sovereign curve.
A higher-probability Fed rate hike raises U.S. Treasury yields and strengthens the dollar, increasing duration and funding pressure on USD-denominated emerging-market sovereign and corporate bonds. Long-dated external bonds with weak near-term refinancing profiles are most sensitive to higher U.S. yields, while commodity exporters often show relative FX/revenue resilience. The move is conditional on further Fed hawkishness or a surprise September decision outcome.
U.S. Federal Reserve policy decision and press conference on 16 September 2026 (FOMC announcement).
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