Any U.S. protectionist policies should they be put in place will likely hit EM bond markets hard. With so many domestic EM bonds in ‘hot’ foreign hands, where a decision to sell would be both easy and quick, EM issuers regularly review their options.
In extremis, one is to introduce capital controls. We have seen this before, although any such decision be active EM issuers would not be taken easily.
EM bond markets are illiquid, fickle and frequently make such sizeable price jumps, such price moves are sometimes best measured in warp light years.
IEMB is an ETF that tracks the performance of Emerging Market bonds. It was up almost 16% in September 2016, before correcting once more, but in late 2016 and the early part of 2017 it again rebounded.
Specific question: Will IEMB.LN close the 2017 half year (June 30) below its January 2nd opening price of 109.51?
2017 opening for IEMB.LN: 109.51
Market close 12th May 2017 IEMB.LN: 113.16