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EM Investors Are Favoring Local Bonds as Dollar Debt Lags

Source: Bloomberg

Emerging MarketsSovereign Debt & RatingsCredit & Bond MarketsInterest Rates & YieldsCurrency & FX

Emerging-market investors are maintaining exposure to local-currency sovereign debt as rising U.S. Treasury yields reduce the relative appeal of dollar-denominated developing-nation bonds. The shift underscores financing and valuation pressure for EM hard-currency debt while supporting demand for domestic-currency securities.

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