CNY Strength And DM Bond Weakness Drive EM Outperformance

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Sep. 12, 2025 4:20 AM ETEMBUXVanEck4.94K FollowersThe VanEck Emerging Markets Bond Fund was up 2.78% in August, compared to up 1.89% for its benchmark.We continue to see two major trends boosting EM bonds – the ongoing selloff of G-10 30y yields (from Japan to the UK and the US), combined with the related and ongoing rally of CNY.During August, we took a brief break from our extreme caution on USD duration as it had worked perhaps too quickly, making Saudi and Philippines big winners for the fund.We remain very bullish on local currency, while very cautious on USD duration.tum3123/iStock via Getty ImagesEmerging markets bonds continue to outperform DM bonds as EM inflation eases and CNY strength lifts EMFX.The VanEck Emerging Markets Bond Fund was up 2.78% in August, compared to up 1.89% for its benchmark. YTD, the fund is upThis article was written byVanEck4.94K FollowersVanEck’s mission is to offer investors intelligently designed investment strategies that capitalize on targeted market opportunities. VanEck seeks to provide long-term competitive performance through active and index strategies based on creative investment approaches and portfolio delivery.At VanEck we are driven by innovation, our hallmark since the company’s founding in 1955. Our efficiently-constructed investment strategies benefit from our experience and in-depth knowledge of targeted asset classes. Our actively managed VanEck Funds target natural resource equities and commodities, emerging market equities, global fixed income, and liquid alternatives. Security selection is the cornerstone of our approach to managing these funds. Our index-based VanEck Vectors ETFs are purpose-built, aimed at either providing exposure to asset classes that are underrepresented in investor portfolios or offering a superior approach to established investment categories. We offer unique, actively managed investment portfolios in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Headquartered in New York City, we have a network of offices worldwide, including offices in Sydney (Australia), Shanghai (China), Frankfurt (Germany), Madrid (Spain), and Pfaeffikon (Switzerland).Disclosure: https://www.vaneck.com/seeking-alpha-terms-and-conditions/CommentsRecommended For You