The outlook for emerging market local-currency bonds worsened as investors abandon bets on interest-rate cuts amid growing tariff trade war fears and a surging dollar. A Bloomberg index of developing-nation local debt has fallen 3.5% since October, reducing this year’s gain to under 2%. Barclays revised its forecast, dropping expectations for Bank Indonesia to cut rates in November and December, while Goldman Sachs sees the Chinese yuan weakening toward 7.50 per USD due to higher US tariffs.