In Argentina, Brazil and Mexico, all of which had enjoyed a booming market for their debt, yield spreads on government bonds suddenly shot upwards.
When so much cash is sloshing around, traditional safe investments such as Treasury debt yield very little, and wealthy investors may seek out fatter returns elsewhere.
Comparable German sovereign debt yielded 1.911 percent.
The debt yields three percentage points more than Treasuries.
United Technologies' existing 30-year debt yields only around 4.4 percent.
Both countries' longer-term debt yields, which reflect higher risk and uncertainty, remain relatively high.
It is not just the sovereign debt yields that have fallen.
Brazilian government bonds were rated as junk and its debt yielded more than 10%.
As a result, there may not be any single unique "equilibrium" for debt yields.
Greek 10-year debt yields are ballooning to well over 8 percent.
But both Italian and Spanish long-term debt yields edged higher on Tuesday.
