A person demonstrates against the rise of public services fares and the government's negotiations with the International Monetary Fund (IMF), in Buenos Aires, on May 14, 2018. AFP / Eitan ABRAMOVICH
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For more than two years, developing nations had it easy as yield-chasing investors poured billions into them, sometimes ignoring weak external finances and monetary-policy complacency.Since the start of 2016, bond investors have put in $1.5 trillion into new debt issues by emerging-market governments and corporates. But after Treasury yields crossed the 3 percent mark in late April, something snapped in the relationship between emerging markets and global investors.In Indonesia, the central bank raised interest rates for the first time in 3 1/2 years after the rupiah fell to the weakest level since October 2015 .Investors reacted by speeding up the lira's sell-off to a point where the central bank had to step in and say it will do what's necessary to protect the currency.It was forced to spend about 10 percent of its foreign reserves and hike interest rates to a world-beating 40 percent to protect its peso.
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