Global asset manager T. Rowe Price has stepped up its exposure to bonds in developing economies, reflecting a shift in strategy as investors weigh weaker returns from the United States, according to Bloomberg.

The firm sees opportunities in markets such as Egypt and Nigeria, where 10-year bond yields top 15% and currencies remain relatively stable. Turkey is also on its radar as policymakers move back toward more orthodox economic management. T. Rowe Price has additionally shown interest in newer hard-currency issuers, including Uzbekistan.

Kenneth Orchard, head of international fixed income, said the conditions were in place for “multi-year virtuous circles” in which capital inflows reinforce stronger fundamentals and attract more investment. He declined to disclose specific allocations made last week.

The decision comes against the backdrop of rising fiscal deficits in the US, concerns over President Donald Trump’s trade agenda, and expectations that the Federal Reserve will ease policy further.

The Fed cut rates by a quarter point last week and indicated two more reductions this year. Analysts at T. Rowe Price believe the cycle of inflows into emerging markets could gain momentum in 2026 if US monetary policy continues to loosen.