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FX bond issuance ramps up, but the outlook is cloudy

EM sovereign FX debt issuance surged over the past year and at the start of 2025, albeit with many sovereigns returning to global markets and issuing at high interest rates. Borrowing does not look excessive and there’s unlikely to be a further sharp rise in issuance this year, particularly if Trump follows through with his policy pledges and this puts upward pressure on the dollar and global bond yields.

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