Key topics  The EM fixed income environment remains challenging, given tightening financial conditions and a slowing China.

 We stay UW in EM local markets with UW EM rates and UW EM FX, while MW EM Sovereigns and Corporates.

Macro developments  EM growth has shown resilience in 1Q22, yet China’s adherence to its zeroCOVID policy, Russia's recession and tightening global financial conditions are set to pull EM growth sharply lower this quarter.

 Global inflation surged to its quickest monthly pace in three decades in March.

Food supply disruptions and delayed pass-through from higher energy prices will linger to keep inflation elevated across EM until 4Q.

 EM central banks are becoming more assertive, especially among low-yielders and laggard high-yielders, given a quicker lift-off by DM central banks, rising inflationary pressures and FX weakness.