Global Strategy: DM rates rout: Where are the weak links in EM?

EM has outperformed through the DM rates rout, supported by strong global growth and superior fiscal balance sheets. Over the past week, however, strains from higher yields have evoked greater growth angst, with global equity breadth and credit spreads deteriorating quickly and the Mexican peso relinquishing its YTD gains. The report asks where the asymmetric risks in EM from here are if the rates selloff deepens, and who will likely stand tall. On FX, it sees several weak links in EM while equity and debt benchmarks are better anchored than the past;