EM bonds looking good despite headwinds


CAUTIOUS optimism is shaping investor sentiment in 2026, with emerging market (EM) bonds expected to benefit from supportive policies and resilient technicals despite slowing global growth and ongoing trade frictions.

Danny Tan, head of fixed income at Eastspring Singapore, believes that Asian central banks’ accommodative stance, backed by moderating inflation and high real yields, should help support bonds in the region.

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