A spike in U.S. Treasury yields may spur fears of a repeat of last year's emerging markets rout, but analysts are divided on whether there's much correlation.
"It is unlikely that the severity of the May/July 2013 correction will be replicated," Societe Generale said in a note Thursday after studying U.S. Treasury yield shocks since 2000. It noted that last year's volatility was unique because markets had gone nearly three years without a Treasury yield shock.
"Only a move to 3.00 percent from [the recent 2.46 percent] will be a potential source of concern," it said.
On Thursday, U.S. 10-year Treasury yields spiked as high as 2.61 percent from July's lows around 2.46 percent after data showing U.S. labor costs are on the rise, spurring concerns the Federal Reserve's first rate hike could be on the cards sooner than currently expected. Treasury yields have retreated a bit to around 2.57 percent in Asia trade.