Reported 6 days ago
The outlook for emerging market local-currency bonds has deteriorated as fears of a new trade war, fueled by Donald Trump's trade policies, grow. Investors are pulling back from expectations of interest rate cuts amid a strengthening dollar and rising Treasury yields, leading to a 3.5% drop in a Bloomberg index of developing-nation local debt since October. Analysts warn that expected tariffs could further weaken emerging market currencies and increase risk premiums, creating a challenging environment for these assets.
Source: YAHOO