Economics
Traders Rush to Global Emerging-Market Bonds
- India’s central bank already surprised markets with rate cut
- Dollar bonds seen more resilient to global economic slowdown
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As emerging-market investors begin to fret about the outlook for economic growth, one asset class may prove to be more resilient to a potential downturn -- global bonds.
After posting the best month in a decade, international debt issued by developing nations extended gains in February. By contrast, the rally in local bonds began to run out of steam on speculation an economic slowdown could make room for central banks to cut interest rates, weakening currencies.