Company: FCO
Filing Date: 2025-01-10
Form Type: N-CSR
Source: 0001104659-25-002474
Chunk: 6

Company: ABRDN GLOBAL INCOME FUND, INC.
Filing Date: 2025-01-10
Form: N-CSR
Chunk 6
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2021 and financial security risks eased. South Korea will be included in the FTSE Russell's World Government Bond Index (WGBI) beginning in late 2025. Bank of Indonesia cut its key rate by 25bps as it showed signs of shifting to a more pro-growth policy stance. China eased its interest rates several times and announced a range of measures to try to stimulate its domestic economy that is struggling with a lack of confidence, courtesy of a much-maligned property market. Several Asian currencies appreciated strongly, led by the Malaysian ringgit, Thai baht, Singapore dollar, and China’s offshore yuan. These currencies benefitted from investors covering shorts and underweight positions as the U.S. delivered upon its anticipated rates pivot. The Philippine peso, South Korean won, and Indian rupee depreciated in value. The U.S. dollar weakened as the DXY dollar index 3fell by 2.5%. Emerging market (EM) debt performed strongly, with hard-currency 4debt outperforming local-currency assets. Within hard-currency markets, high-yield debt outperformed investment-grade credit. Several EM countries saw their bonds surge as they made progress towards securing finance, including Argentina, the best-performing country in the period. Argentina also stabilized its economy by swapping some 77% of its local debt due this year for longer-dated notes. This will reduce the government's reliance on printing pesos to cover its debt payments. Progress on fund raising also boosted the bonds of Pakistan, Ecuador, Egypt, and Ukraine. In local-currency bonds, South Africa was the top performer after its general election led to a more market-friendly government. The major Latin American currencies came under pressure from a mixture of headwinds, largely driven by domestic policy disappointments and expectations of external policy challenges under a new U.S. administration. These currency movements were offset by the falling domestic interest rates. Global high yield delivered solid returns, driven by the sharp fall in U.S. Treasury yields combined with spreads that tightened to around 300bps, close to their narrowest level in a 20 year history. The asset class continued to benefit from strong demand as money flowed into the market in sizeable amounts from investors attracted

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| 1 | A yield curve is described as inverted when short-term rates are higher than long-term rates. |

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| 2 | Fed funds futures are financial futures contracts that reflect market expectations about changes in interest rates. |

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