HSBC Holdings said that if inflation data continues to fall short of market expectations, it will create a more favorable market environment for local currency bonds in emerging markets. The summer period is particularly favorable. Ali Chakiroglu, an emerging market strategist based in London, said in an interview that the market has already fully taken into account the inflationary impact of the El Niño phenomenon in advance, and the inflation data for the next few months is likely to fall short of expectations. The bank's analysis shows that in mainstream emerging market asset categories, the valuation of emerging market local currency bonds is low, and the nominal yield is discounted by about 5%.

HSBC Holdings said that if inflation data continues to fall short of market expectations, it will create a more favorable market environment for local currency bonds in emerging markets. The summer period is particularly favorable. Ali Chakiroglu, an emerging market strategist based in London, said in an interview that the market has already fully taken into account the inflationary impact of the El Niño phenomenon in advance, and the inflation data for the next few months is likely to fall short of expectations. The bank's analysis shows that in mainstream emerging market asset categories, the valuation of emerging market local currency bonds is low, and the nominal yield is discounted by about 5%.