Latin America’s local-currency bonds are staging the strongest monthly advance this year as the Federal Reserve draws closer to cutting interest rates for the first time since the onset of the pandemic.
Bets that the long-awaited easing is poised to begin next month are helping to allay fears about a potential US recession that would ripple through the region, which has close trade ties to the world’s largest economy. The pivot is also expected to make it easier for central banks there to loosen monetary policy without triggering an exodus of cash to the US, driving traders to bid up bond prices in countries like Mexico, Chile and Peru in anticipation.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66cde8ac95ac499a9131582773be2adb&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2024-08-27%2Ffed-bets-fuel-best-month-of-2024-for-latin-america-local-debt&c=12549231832906176717&mkt=en-us
Author :
Publish date : 2024-08-26 13:00:00
Copyright for syndicated content belongs to the linked Source.
