Gains in some markets, including Hungary, Brazil and Egypt are topping 20%. Photographer: Akos Stiller/Bloomberg) Show Quick Read Summary is AI Generated. Newsroom Reviewed

A rare turn in global inflation trends is expected to inject fresh momentum into this year’s rally in emerging-market bonds.

Morgan Stanley Investment Management Inc. and Ninety One Plc are among the money managers positioning for further gains in emerging local-currency debt, on a view that central banks will have room to cut interest rates faster than in the developed world. It would add another dimension to a stellar run for investors, who are already enjoying the best gains in years in asset classes from stocks to dollar bonds.

What’s exciting investors is a sharp slowdown in inflation. For two straight quar

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