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EM Investors Shrug Off Quarter’s Pullback, Double Down on Carry Trades

Source: Bloomberg

Emerging MarketsCurrency & FXInterest Rates & YieldsInvestor Sentiment & Positioning

Emerging-market carry trades posted a rare quarterly loss as US Treasury yields reached multi-decade highs. Investors are nevertheless maintaining positions, betting that the strategy can withstand elevated US rates, though high yields remain a key risk to EM currencies and carry returns.

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