Emerging Market Debt Commentary – July 2020

Emerging market (EM) debt saw strong returns in July (in USD terms) as it continued to recover from the sell-off earlier in the year. A weaker US dollar, broadly improving business confidence and purchasing managers’ indices (PMI) across Asia and Latin America, and further progress on COVID-19 vaccine trials underpinned gains. A steady rise in the oil price on improving demand, continued fiscal support, accommodative monetary policy from global central banks also provided support over the month.