Mexico’s peso bonds will likely end a rally that drove yields to a record low after the central bank reports that inflation missed its target last month, said Kieran Curtis , a fund manager at Aviva Investors.
Yields on Russian government bonds are falling to the lowest level in almost four months compared with developing nations in Europe as rallying oil prices boost confidence in the world’s largest energy exporter.
Turkish bond yields are rising faster than the rest of emerging-market debt and still can’t entice the world’s biggest investors, who say policy makers won’t curb inflation unless they take steps to slow growth.
Hungary will probably be able to sustain state finances even as Moody’s Investors Service cut the country’s debt rating, on expectations the new government will continue to narrow the budget deficit, Aviva Investors said.
The forint tumbled, extending the biggest decline among emerging-market currencies this year, and bonds and stocks fell after Moody’s Investors Service lowered Hungary’s credit rating to one step from junk.