(Bloomberg) -- Long relegated to the fringes of bond investing, emerging markets have just been thrust into the mainstream by JPMorgan Chase, in a clear repudiation of negative-yielding developed markets.

The investment bank has put local sovereign debt of developing nations at the heart of a new global bond index, accounting for 20% of allocations. Since similar gauges recommend about 2% weighting to emerging markets, wide adoption by global money managers and ETFs has the potential to set off a new wave of buying, according to Morningstar. A rally cut average yields on local-currency bonds by 50 basis points to 4.25% in the past year.

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