EMD

EMD is exhibiting classic 'Institutional Absorption,' holding the $10.93 level despite a 5bp spike in the 10-year Treasury yield (to 4.28%) that would typically punish Emerging Market debt. The driver is the stronger-than-expected ISM Manufacturing print (52.6), which signals the end of the global manufacturing recession—a massive tailwind for EM export economies that outweighs the duration drag from higher US rates. The 'Perfect Stack' and 'Alpha Male' signals confirm that yield-hungry capital is using the 'Kevin Warsh Fed Chair' volatility to accumulate exposure to the global reflation trade.