It is going to be a Fed week. The market is 100 percent in sync with a quarter of a percentage point rise for Fed fund rates at 4.75 percent.
It is pretty evident that every time you get above (the 10-year Treasury yield of) 4.72 to 4.73 percent area the market becomes uneasy. That is the inflection point where you see negative returns and some spread widening (in emerging market debt).
Overall, you have a very technical market pushing us to historical highs because once people got a feel for these higher levels, it has been an easy push to the upside and has been helped by lack of liquidity.
The market place is at the mercy of the Fed, its rhetoric and of U.S. Treasuries, which are highly data dependent. Anything that signals weakness either in inflation or in housing will be positive for Latin America because it is going to weaken Treasury yields.
The Latin American market is going to pay a lot of attention to moves in U.S. Treasury rates, while the US equity market remains a major momentum generator.