As US investors tuck into Thanksgiving turkey, markets are digesting President-elect Trump’s intention to introduce trade tariffs on some of the US’ biggest trading partners. We explore the potential impact on emerging market (EM) rates and local currencies.

What does this mean for fixed income investors?

EM yields remain elevated despite the recent US election; they sold off significantly in 2016 but have fared markedly better following the 2024 US election predominantly due to a far stronger fundamental picture. Given this backdrop and our expectation that select EM central banks will cut rates, selective overweights to EM local at this stage of the cycle could diversify overall portfolio exposure and add to potential return expectations.

About the Bond Bulletin

Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.

Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.



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