15-05-2025
Chinese Disinflation Wave Is Set to Boost Emerging-Market Bonds
A wave of Chinese exports redirected toward emerging markets is likely to help crimp inflation across the developing world and bolster longer-maturity bonds, fund managers say.
Goods from the Asian nation are set to flow away from the US due to the higher tariffs imposed by President Donald Trump, and be a force for disinflation elsewhere, according to Principal Asset Management, Banque Lombard Odier et Cie, and Barclays Plc. Bonds in countries with a high ratio of Chinese imports will benefit the most, including Malaysia, Brazil and South Africa, Barclays says.
