Oil price shocks and yield curve dynamics in emerging markets

In a local projections framework, we study the impact of oil price shocks, based on refined approach to disentangle movements, dynamics entire yield curve in nineteen emerging economies with different positions market. Responses term structure factors market shocks are shown differ conditional not only underlying sources that drive price, but also oil-dependence these economies. particular, find risk put upward pressure level, slope, and curvature interest rates across board. Supply-driven markets cause rise level oil-importing more significantly, yet downward slope is pronounced oil-exporting countries. Demand-driven have significant persistent Furthermore, effect precautionary demand factor countries vis-à-vis oil-exporters. Significance, direction, duration our results may guide monetary policymakers as well international investors portfolio hedging decisions.