Bloomberg Surveillance · Monday, July 6, 2026
Opportunities exist in emerging markets, particularly Mexico and India, where central bank rate hikes may be overpriced. Mexico, with a nine percent yield on its ten-year bond, offers high real yields when considering forward inflation expectations. This contrasts with the US, which is seeing higher real yields but also potential headwinds.
“So there are a lot of opportunities. You know, I have a background in US rates and I look at the global rates market what is priced into different central banks, and I do think that there's a lot of opportunities, particularly in markets where rate hikes may be somewhat overpriced, particularly outside the US.”
“We've seen this amazing retracement in oil. I mean, the speed in which oil has come down from the highs and normalized back to pre war levels has been incredible. And at the same time, the thing that caused central banks to be hawkish has unwound. But some of that hawkish pricing is still in the markets.”
“And so where there are areas in the emerging markets, for example, like Mexico, which is closer to US, in India further away, where those central bank hikes may not actually they may not follow through with those hikes in theirs to Mexico.”