Citi's latest Emerging Markets Strategy Weekly report highlights a cautious outlook for emerging market local currency bonds (EMLC) amid evolving global macroeconomic conditions. The report suggests a negative bias towards EMFX in the coming months, driven by uncertainties in EUR FX and China's economic policy. Citi analysts note, "We remain of the view that one should be trading EMFX with a negative bias in the coming months." The report also points to potential opportunities in Indonesia, where a sturdier Rupiah and Bank Indonesia's growth tilt support an overweight duration in EM bond portfolios. Meanwhile, Mexico faces tariff risks, with President Trump's recent warnings potentially impacting growth. Citi anticipates Banxico may cut rates by 50 basis points next week, aligning with expectations of an extended easing cycle.