US yields dampen EM local currency bond optimism

By Mariam Meskin
22 Feb 2021

Expectations of increased demand for emerging market local currency bonds are starting to wane, as the macroeconomic backdrop and rates volatility in the US point to a stronger dollar in the short-term.

Investors had heralded 2021 as the year of emerging market local currency supply.

Eaton Vance, the investment manager, said earlier this month in a report that emerging market local currency debt was one of the very few sectors to have attractive valuations. 

"Technicals [are] likely to remain supportive," ...

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