EMD Monthly Market Musings - September 2025

Get up! Stand up! Stand up for… (EM) central bank independence

September 2025 – As summer ends and it’s “back to school” (and markets), we can reflect on a relatively stable summer where carry rather than price appreciation has driven emerging market (EM) bond returns. This year’s impressive EM fixed income performance continues: hard currency sovereign debt returned 8.7% to the end of August and local currency was up 14% (data from Bloomberg).