Fed funds rate ticking up, what's it mean for EM bond yields?

The overnight $FFR hitting 36.8818 is definitely something to keep an eye on, especially with the 1.28% move. It's not a huge jump in isolation, but the direction matters. My main thought here is the potential knock-on effect for EM fixed income. Higher rates stateside, even marginally, tend to put pressure on EM bond yields, making them less attractive relative to the perceived safety of US treasuries, or at least narrowing the spread.

I'm thinking about currencies like the BRL and TRY in particular, which have been sensitive to global rate differentials. If the Fed's stance continues to firm, even subtly, the capital flows into these regions could become more volatile. It's not a sell signal for everything EM, but it definitely pushes me to tighten my stops and reconsider allocations to countries with weaker fiscal positions. The cost of carry becomes a bigger factor.