Inflows and carry will revive EM Asian bonds

Investors see the backdrop improving on attractive inflation-adjusted bond yields and currency gains from Federal Reserve rate easing. — Bloomberg

SINGAPORE: Emerging Asia’s local-currency bonds are poised to rebound in 2026, according to Fidelity International and Bank of America Corp (BofA). 

Investors see the backdrop improving on attractive inflation-adjusted bond yields and currency gains from Federal Reserve (Fed) rate easing, while light foreign positioning leaves room for global funds to rebuild exposure.