Geoff Yu at BNY sees Brazil and Mexico operating in a more comfortable policy environment after the Fed decision, with anchored United States (US) front-end yields supporting emerging-market duration. Front-end US yields are better anchored, and the breakout in US breakeven rates have significantly undermined the case for US real yields, which matters greatly for EM duration." Contrary to our expectations, the global carry trade has failed to make much headway amid cross-asset volatility and challenging geopolitics." "The fall in dollar front-end rates has improved risk-reward, but we see more potential in sovereign debt. Latin American paper performed poorly through end-June and early July, leading to clear rebalancing potential toward month end."