Emerging-market local-currency bonds have rallied sharply since last October, along with other risky segments of the global bond market. However, navigating the market can be challenging.
Although a strong economy has changed expectations about the timing and magnitude of interest rate cuts, we still see room for the Federal Reserve to cut by three-quarters of a point this year.
Short-term bond yields are high currently, but with the Federal Reserve poised to cut interest rates investors may want to consider longer-term bonds or bond funds.