Updated
Updated · Bloomberg · Jun 24Pimco Backs Emerging-Market Bonds as China’s Cheap Exports Keep Inflation in Check
2 articles · Updated · Bloomberg · Jun 24Summary
- Pimco says China’s wave of low-cost exports is strengthening the case for emerging-market bonds by easing price pressures across developing economies.
- US and European trade barriers are redirecting more Chinese goods toward emerging markets, a shift Pimco expects to continue.
- Lower imported inflation could give central banks in developing countries more room to cut interest rates and support growth.
- That backdrop would improve the appeal of emerging-market debt, linking China’s export surplus to easier policy and bond-market gains.
Insights
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