📊 Dollar weakness is set to unleash a “wall of money” into emerging markets
🔹 A weaker dollar boosts carry trade returns, so USD-funded EM debt purchases should accelerate.
🔹 Treasury buybacks cap long-end yields, pressuring the dollar and pushing investors abroad for yield.
🔹 Front-runners include India, Indonesia, Brazil, Mexico, but winners will be those with stable FX and credible central banks.
🔹 Watch for reversals: hot US inflation or weak buybacks could snap the dollar back and unwind EM trades.
💡 This trade works until it doesn't — position early but exit the moment US yields stop cooperating.
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