Second Wave of Rate Hikes Key to Get Emerging Bonds Rallying
- Russia to Mexico seen extending hawkish monetary stance
- Central banks have to hike more, Deutsche Bank’s Wietoska says
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Some of this year’s worst-performing emerging markets will get another chance to lure back bond investors after their first round of aggressive rate hikes failed to contain inflation.
At least seven countries including Russia, Mexico and India are set to follow Poland and Romania, which raised benchmark rates this week, with a combined 220 basis points of increases. These nations are suffering some of the worst losses in the local-currency bond market after January data showed consumer prices continued their upward march.