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Mollifying the Mullahs: A Fool's Errand - The Media Line


05/05/2021
There was a young lady of Niger / Who smiled as she rode on a tiger; / They returned from the ride / With the lady inside, / And the smile on the face of the tiger. - William Cosmo Monkhouse
The word swirling around Washington is that the Biden administration, possibly in cooperation with the UK government, is set to strike a deal with Iran for the release of two American and two British hostages. One report out of Iran suggests that up to $7 billion in frozen funds could be the price exacted by the mullahs in Tehran for their return.[1]
At the same time, a similar game of bait-and-humiliate is being played out in the nuclear arena where, once again, Iran is threatening to accelerate its enrichment of weapons-grade uranium unless the US agrees to lift all sanctions against the rogue regime. Incredibly, the administration believes that a return to the failed Joint Comprehensive Plan of Action is the key to restraining Iran’s ambition to dominate the Middle ....

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Hedge Fund Giant Says U.S. Yield Near Triggering EM Bond Slide

(Bloomberg) Emerging-market bonds are becoming increasingly vulnerable as Treasury yields climb with the level of 2% on the U.S. 10-year note likely to trigger major outflows, according to Man Group Plc, which oversees $124 billion.Developing-nation debt is also under threat due to stretched valuations, the prospect of quicker inflation and the danger of Federal Reserve missteps as it tries to counter the pandemic’s impact without overheating the economy, Lisa Chua, portfolio manager on the emerging-markets debt team at the group’s hedge-fund unit Man GLG in New York, said in an interview.“The velocity of the moves in U.S. Treasury yields are now intensifying at a time when both hard currency and local emerging-market bonds are more vulnerable to such a move,” Chua said. “Valuations have gotten increasing stretched and positioning more crowded. In our view, emerging-market bonds have limited cushion left to absorb further increases in U.S. 10-year y ....

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