Second-Poorest EU Nation Yields Best Bonds
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Romania, the second-poorest member of the European Union, is lavishing bond investors with the best returns in emerging markets on prospects for interest-rate cuts and a loan from the International Monetary Fund.
An index of local-currency notes gained 1.8 percent since May 22, when Federal Reserve Chairman Ben S. Bernanke said policy makers may pare asset purchases, the biggest advance among JPMorgan Chase & Co.’s emerging-market local-bond index. The global composite gauge lost 3.9 percent in the period. The Fed unexpectedly refrained from reducing the $85 billion pace of monthly bond buying today, saying it needs to see more signs of lasting improvement in the economy.