Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)

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Unraveling Emerging Market Sovereign Yields: A Novel Three-Part Decomposition

Authors
Akhil Rana1, *
1University of Connecticut, School of Business -Financial Risk Management, Mansfield, CT, USA
*Corresponding author. Email: 18akhilrana@gmail.com
Corresponding Author
Akhil Rana
Available Online 10 November 2025.
DOI
10.2991/978-94-6463-894-3_21How to use a DOI?
Abstract

This research suggests an innovative framework for fragmenting sovereign bond outputs in evolving economies by unambiguously including credit risk elements. Using intraday data to separate unanticipated adjustments in US monetary policy, the study analyzes their impact on results in developing domains. The yield components are decomposed into predicted short-term rates, expression premiums, and credit risk premiums, providing a thorough outlook on how U.S. monetary policy transmits internationally. The results show that surprises in US policy trigger modifications in expectations of policy rates and guide to the revaluation of both interest rate and credit risk in evolving sectors. In specific, evolving market monetary authorities regularly respond in tandem with US policy changes, unconventional U.S. metrics impact expression premium interactions abroad, and sovereign credit risk reacts to U.S. monetary policy variations.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
10 November 2025
ISBN
978-94-6463-894-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-894-3_21How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Akhil Rana
PY  - 2025
DA  - 2025/11/10
TI  - Unraveling Emerging Market Sovereign Yields: A Novel Three-Part Decomposition
BT  - Proceedings of the International Conference on Policies, Processes and Practices for transforming Underdeveloped Economies into Developed Economies (PPP-UD 2025)
PB  - Atlantis Press
SP  - 298
EP  - 315
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-894-3_21
DO  - 10.2991/978-94-6463-894-3_21
ID  - Rana2025
ER  -