Bond Funds Cheer Emerging Markets Moving Fast to Choke Inflation

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Global bond investors are on the prowl for emerging markets that are ahead of the game on inflation.

TS Lombard recommends funds buy local debt from Brazil, where a third interest-rate hike is expected when officials meet Wednesday. PineBridge Investments praised inflation tough talk from Bank of Russia Governor Elvira Nabiullina and predicted gains for the nation’s longer-maturity bonds.

Central bankers in the developing world are treading a fine line managing price pressures in places where the scars of hyperinflation are fresh and also nurturing economies still struggling with the coronavirus pandemic.

While the pattern is far from consistent, climbing commodity prices and undervalued exchange rates are turning up the heat across the board, with attention this week shifting to inflation data in Argentina, India and Poland.

“Investors will ultimately favor those countries in which central banks are able to…

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