Greenspan Era Evoked as Treasuries Guide Emerging Stocks: Chart

(Bloomberg) -- U.S. Treasuries and developing-nation stocks are moving in opposite directions by the most since 2004, when the Federal Reserve under former Chairman Alan Greenspan began its last cycle of interest-rate increases. As a selloff in Treasuries portends another bout of tightening, the biggest rise in 10-year yields in seven years has coincided with declines in the MSCI Emerging Markets Index. Higher U.S. rates narrow risk premiums, making assets in the developing world less attractive.

To contact the reporter on this story: Srinivasan Sivabalan in London at ssivabalan@bloomberg.net.

To contact the editors responsible for this story: Dana El Baltaji at delbaltaji@bloomberg.net, Stephen Kirkland