Traders line up for ‘once-in-a-generation’ bet on emerging markets
One of last year’s best wagers in emerging-market debt is getting a fresh boost from bets that the US Federal Reserve will finally begin cutting interest rates.
Optimism is sweeping through domestic bond markets as investors wager that the Fed will soon start lowering rates, with Wall Street set to scour this week’s meeting for clues on timing. Alongside a weaker US dollar, a potential pivot would help coax central bankers in emerging markets to ease – resulting in a potential windfall for holders of local-currency debt.
Bloomberg
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