Archive · 16 Aug 2026

EM Inflation-Linked Debt Draws Selective Bets After Big Run

EM Inflation-Linked Debt Draws Selective Bets After Big Run

Some countries' governments borrow money by selling bonds.

Usually, a bond pays a fixed amount of interest.

But there are special bonds called inflation-linked bonds, where the payments go up when prices in the country go up.

This year, these special bonds in developing countries have made investors a lot of money, about 11.3%.

That is much better than other types of bonds.

Investors are now being careful and choosing only the best ones.

They like the ones in Chile, Poland, and Argentina.

But they are less excited about the ones in Brazil and Mexico now.

One reason is that prices are rising faster than expected in many countries.

Also, the Turkish central bank said it did not meet its price goal and raised its forecast.

Investors are watching the weather too, because something called El Niño could make food prices go up.

Overall, these special bonds are still popular, but investors are being pickier about which ones to buy.

Sources