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Emerging-Market Bonds Soar as Inflation Cools

11/10/2025

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Summary

Story summary

Emerging-market bonds rally as inflation slows to 2.47% in the July-September quarter, versus 3.32% in developed economies.
Local bonds have yielded about 7% on average this year, with Hungary and Brazil above 20%.
Central banks in emerging markets, including Mexico and Poland, are cutting rates, supporting the Brazilian real.
Analysts expect gains in emerging local-currency debt as inflation dynamics improve, making them appear less risky than developed markets.

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Story summary

Emerging-market bonds rally as inflation slows to 2.47% in the July-September quarter, versus 3.32% in developed economies.
Local bonds have yielded about 7% on average this year, with Hungary and Brazil above 20%.
Central banks in emerging markets, including Mexico and Poland, are cutting rates, supporting the Brazilian real.
Analysts expect gains in emerging local-currency debt as inflation dynamics improve, making them appear less risky than developed markets.