Investors Return to Long-Duration Bonds in Emerging Markets

Reported about 1 year ago

Investors in emerging-market debt are once again turning to long-duration bonds after a tough start in 2024. The rebound in long-dated sovereign debt is fueled by expectations for rate cuts by the Federal Reserve following two consecutive months of below-estimate US inflation. Dollar-denominated emerging-market sovereign bonds with a maturity of 10 years or more have outperformed every other category since May, as investors shift towards the duration trade, with some favoring investment-grade debt in select emerging-market countries.

Source: YAHOO

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