logo
    • Buy Crypto
    • Markets
    • Futures
    • Spot
    • Earn
    • Affiliates & AI
    • More
    1. WEEX
    2. Crypto News
    3. Emerging Markets Recovered Flows in July, Thanks to Bonds

    Emerging Markets Recovered Flows in July, Thanks to Bonds

    By: rootdata|2026/08/13 10:00:00
    0
    Share
    copy
    Prefer us on GooglePrefer us on Google
    NOWNOW
    00.00%--
    THETHE
    00.00%--
    SOONSOON
    00.00%--
     

    International investors returned to emerging markets last month after two months of significant capital outflows. According to the Institute of International Finance (IIF), portfolio flows to emerging markets returned to positive territory in July, reaching $18.8 billion, effectively recovering the outflows from June that totaled $18 billion (over $25 billion had left in May). As has been the case in the last quarter, net flows are positive due to bets on emerging fixed income, while equities continue to experience net outflows, albeit of a smaller magnitude. IIF data indicates that flows into emerging bonds amounted to $26.7 billion, while emerging equities suffered outflows of $7.8 billion. Another distinctive feature of what happened in July was that Asian emerging markets shifted from being the main drag to the main contributor, with $9.3 billion.

    The IIF's reading is that while July sends a firmer signal, it is still conditional. It highlights that demand for bonds remains broad, issuances continue to reach record figures, and the drag on equities has been reduced to a fraction of the magnitude seen in June. Looking ahead, the IIF considers that a Federal Reserve (Fed) with a more restrictive stance, coordinated intervention in the yen, and a repeated rise in geopolitical tensions only darken the outlook that has supported the reopening of the debt market. In this regard, the IIF warns that issuers have accelerated placements ahead of a possible change in U.S. monetary policy, so as August is usually a month of lower issuance levels, the next challenge for access to debt markets will be in September. In this respect, a noteworthy fact, especially for the wishes of "Toto" Caputo's team to return to capital markets: actively managed emerging debt funds recorded net inflows for the first time since 2021, and the sector's assets remain below their 2021 peak, suggesting there is room for allocations to recover rather than a saturated position.

    Regarding the near future, the IIF delves into the analysis of the three forces that could test the balance of the market between bonds and equities.

    • First, markets now value that there is more than a 60% probability of a rate hike as soon as September, under a more restrictive Warsh Fed, which would raise the benchmark interest rate for the duration and exchange rate of emerging markets just as issuance resumes after the Northern Hemisphere summer pause.
    • Second, the recent intervention in the yen, coordinated with the U.S. Treasury, introduces a new source of uncertainty for "carry trade" operations financed in yen. A sustained appreciation of the yen would raise financing costs and could force a broader adjustment of "carry trade" positions, although the durability of the intervention's effect is still uncertain.
    • Third, geopolitical tensions have shown a recurring trend of intensifying, from the Strait of Hormuz to the Red Sea, maintaining the risk of energy prices and their unequal effects on importers and exporters in emerging markets.

    None of these forces have yet altered the landscape of flows, but all three operate through the same channel: lower dollar liquidity and a less permissive carry trade. Therefore, the IIF considers that July sends a firmer, yet conditional signal. "The outlook for investment flows in the Northern Hemisphere autumn will depend on whether this stabilization turns into a genuine recovery of capital flows or if it is interrupted by a Fed with a restrictive monetary policy, a stronger yen, and new geopolitical crises," notes the report by economist Jonathan Fortun from the IIF.{#p-1786574435413-25633}

    What other data does the July report highlight? {#p-1786575032005-76007}

    • The return of positive portfolio flows from non-resident investors to emerging markets did not signify a complete normalization. The composition remained heavily dominated by bonds, and the overall improvement was more due to a decrease in equity liquidation than a recovery in equity demand.

    • Nevertheless, July marks a clear break in the sequence of aggregate outflows that characterized the end of the northern spring, suggesting that the tension concentrated in Asian equity markets is losing intensity rather than extending to fixed income.

    • Flows into emerging market bonds amounted to $26.7 billion, a figure similar to June's $28.1 billion and below last July's $36 billion. The regional distribution was again broad: Asia attracted $14.1 billion, Latin America $5.9 billion, Europe $4.6 billion, and the MENA region $2 billion. • Excluding China, flows into emerging market bonds totaled $30.1 billion, nearly the same level as in June, indicating that institutional demand for fixed income in emerging markets remained intact during July.

    • Sovereign issuance from emerging markets reached $19 billion, approximately double its seasonal average over the last decade, raising the gross supply accumulated so far this year to $187 billion, the highest total recorded to date, with a net issuance of around $119 billion.

    • The supply was almost entirely investment grade, with only $1.6 billion coming from high-yield issuers, and included large transactions from Kuwait, Chile, Hungary, and South Korea, in addition to Malaysia's first "sukuk" (Islamic bond) issuance since 2021. Euro issuance continued to expand the funding base, and frontier countries maintained access to reduced spreads.

    • Outflows from emerging equities decreased to just $7.8 billion compared to over $46 billion in June, when a year ago there were inflows of $10.5 billion.

    • Outflows from emerging equities, excluding China, fell to $4.1 billion from $32.2 billion, as the liquidation of tech assets in South Korea and Taiwan lost momentum during the month, and specialized capital funds resumed modest inflows since mid-July.

    • Outflows from Chinese equities decreased to $3.7 billion from $14 billion in June, while debt flows from China remained negative at $3.4 billion, extending a steady outflow that has persisted throughout the year. China's drag on the aggregate of emerging markets has been halved, but this improvement reflects lower equity outflows rather than a recovery in demand.

    • Regionally, emerging Asia recorded total inflows of $9.3 billion (an increase of $36.3 billion compared to the outflows of -$27 billion in June), while equity outflows fell to just $4.8 billion from $40.5 billion, and demand for debt strengthened to $14.1 billion.

    • Meanwhile, Latin America attracted $5.5 billion, compared to $2.5 billion in June, with inflows into bonds of $5.9 billion and equity flows of...

    Emerging markets remained practically stable, in line with the strong demand for assets with high real interest rates at the end of the month.

    • No region recorded aggregate outflows in July, reinforcing the idea that pressure has concentrated on specific asset classes rather than affecting emerging markets as a whole. "Carry trade" strategies in emerging markets have risen nearly 12% this year, marking their best start since 2023, and this remains the focal point of the flow landscape.

    • The spreads on sovereign debt in emerging markets tightened to their most compressed levels in nearly two decades during July, with yields on local currencies, close to 6.2%, continuing to offer wide spreads over funding currencies, and currency volatility remained unusually low in major currency pairs of emerging markets, reducing hedging costs and favoring risk-adjusted carry trade.

    • Crude oil prices rose more than 20% during July due to renewed supply risks in the Middle East before retreating in early August, while yields on U.S. Treasury bonds increased. In this context, investors continued to finance exposure to emerging market debt, even as they refrained from taking risks in equities.

    {#p-1786574435413-94221}


    -- Price

    --

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

    You may also like

    Oracle Expands AI Database to 20 Regions

    Oracle Expands AI Database to 20 Regions

    Oracle and Amazon are expanding the regions and functionalities of Oracle AI Database@AWS, bringing enterprise databases and generative AI services closer together.
    The Key to Ethereum's Transformation: The Future of STARK Recursive Proofs in the Next Decade

    The Key to Ethereum's Transformation: The Future of STARK Recursive Proofs in the Next Decade

    Who Holds Cryptocurrency in Iran? A Map Clarifying the Boundaries of the Central Bank, Stock Exchange, and Taxation

    Who Holds Cryptocurrency in Iran? A Map Clarifying the Boundaries of the Central Bank, Stock Exchange, and Taxation

    FOMO Co-founder Se Yong in-depth interview: Traders are becoming the new generation of internet celebrities

    FOMO Co-founder Se Yong in-depth interview: Traders are becoming the new generation of internet celebrities

    Why millions of everyday savers will soon own Bitcoin without ever downloading a crypto app

    Why millions of everyday savers will soon own Bitcoin without ever downloading a crypto app

    Bitcoin is moving into adviser portfolios, spot ETFs, and retirement accounts as traditional finance broadens access to exposure.
    Digital Currency Regulation Established in Russia

    Digital Currency Regulation Established in Russia

    The circulation of digital currency in Russia is now governed by a separate legal regime: the Federal Law of the Russian Federation No. 282-FZ "On Digital Currencies and Digital Rights" was adopted on August 4, 2026. The document defines the status of digital currency, transaction rules, mining proc...
    China's De-dollarization: Is the Western Financial System at Risk?

    China's De-dollarization: Is the Western Financial System at Risk?

    DeepMind Leadership Transition Report, Conflicting Official Titles

    DeepMind Leadership Transition Report, Conflicting Official Titles

    Google DeepMind is reportedly transitioning from a research leadership centered around co-founder Demis Hassabis to an operational system led by Chief Technology Officer Koray Kavukcuoglu.
    Bullish Reports 62% Year-on-Year Revenue Growth After Q2 Adjustments, Plans to Build a Full-Process Tokenized Securities Platform

    Bullish Reports 62% Year-on-Year Revenue Growth After Q2 Adjustments, Plans to Build a Full-Process Tokenized Securities Platform

    Michael Burry Shorts 4 AI Stocks and Goes Long on Mercado Libre

    Michael Burry Shorts 4 AI Stocks and Goes Long on Mercado Libre

    Suspicious Cryptocurrency Transactions: Banks to Require Disclosure of Transfer Chains

    Suspicious Cryptocurrency Transactions: Banks to Require Disclosure of Transfer Chains

    Suspicious cryptocurrency transactions will primarily affect large businesses and companies engaged in foreign trade: banks will need a clear explanation of where the money came from, why the digital currency was purchased, and to whom it was subsequently sent. Cryptocurrency in Russia is gradually ...
    Study finds 65,340 risky crypto addresses tied to $574 million in losses

    Study finds 65,340 risky crypto addresses tied to $574 million in losses

    USENIX researchers link $574.8M in losses to 65,340 risky crypto addresses across Ethereum and BNB Smart Chain, including $15.7M from two attack vectors.
    Astronomers Discover a New Astrophysical Object: The Black Hole Star

    Astronomers Discover a New Astrophysical Object: The Black Hole Star

    MIT astronomers have detected an object that combines characteristics of a star and a black hole. It emits 100 billion times more energy than any known star, challenging current astrophysical models.
    The Race for Tokenized Funds: It's Not Just About Scale

    The Race for Tokenized Funds: It's Not Just About Scale

    Vitalik's Ten-Year Posting Statistics: Is the Ethereum Roadmap Changing More Frequently?

    Vitalik's Ten-Year Posting Statistics: Is the Ethereum Roadmap Changing More Frequently?

    The Bank of England Tests Interoperability Between Stablecoins and Digital Pound in Cross-Border Trade

    The Bank of England Tests Interoperability Between Stablecoins and Digital Pound in Cross-Border Trade

    [Editorial] The Rails Are Laid Before the World Notices

    [Editorial] The Rails Are Laid Before the World Notices

    Recently, countries leading in RWA (Real World Asset tokenization) include the United States, the United Kingdom, Switzerland, Germany, France, Singapore, Hong Kong, and Japan. ...
    In the Crypto Bear Market, Which Crypto Stocks Are Institutional Giants Accumulating?

    In the Crypto Bear Market, Which Crypto Stocks Are Institutional Giants Accumulating?

    web3: Rakuten Integrates XRP into Its Points and Payment Ecosystem

    web3: Rakuten Integrates XRP into Its Points and Payment Ecosystem

    Rare Evo Conference 2026: Awaiting Clarity & The Agentic Economy Arrives

    Rare Evo Conference 2026: Awaiting Clarity & The Agentic Economy Arrives

    Everything is Broken, Bitcoin is Burning, but it is Becoming Stronger Because of This

    Everything is Broken, Bitcoin is Burning, but it is Becoming Stronger Because of This

    Zcash is borrowing crypto’s new institutional playbook as privacy goes mainstream

    Zcash is borrowing crypto’s new institutional playbook as privacy goes mainstream

    Zcash is building a new distribution layer to expand privacy infrastructure, institutional integrations, and real-world access.
    Charles Schwab has added Bitcoin, Ether trading to its $13 trillion platform

    Charles Schwab has added Bitcoin, Ether trading to its $13 trillion platform

    Why Are Cryptocurrency Believers Throwing Their Coins into AI?

    Why Are Cryptocurrency Believers Throwing Their Coins into AI?

    QuickNode, Privy, N26: Have your data been leaked after the Metabase hack?

    QuickNode, Privy, N26: Have your data been leaked after the Metabase hack?

    Stablecoin BRLV: Crown and Nexa Finance Form Partnership

    Stablecoin BRLV: Crown and Nexa Finance Form Partnership

    The Revolution of Humanoid Robots: When Will They Arrive in Homes and Where Do Investors See Opportunities

    The Revolution of Humanoid Robots: When Will They Arrive in Homes and Where Do Investors See Opportunities

    The advancement of robotics accelerates an industry that still faces challenges of scale, costs, autonomy, and safety before achieving mass adoption. Meanwhile, the latest reports show that more concrete business opportunities are beginning to emerge among supplier companies.
    How to Invest in AI Stocks in 2026: From Nvidia to AI Crypto Coins

    How to Invest in AI Stocks in 2026: From Nvidia to AI Crypto Coins

    Learn how to invest in AI stocks in 2026 with this complete guide. Explore individual AI stocks, AI ETFs, tokenized stocks, AI crypto, and the best ways to gain exposure to the growing AI market.
    Copper expands into US with regulated crypto custody and trading services

    Copper expands into US with regulated crypto custody and trading services

    Bank of America Commits $250 Billion to U.S. Infrastructure

    Bank of America Commits $250 Billion to U.S. Infrastructure

    Oracle Expands AI Database to 20 Regions

    Oracle and Amazon are expanding the regions and functionalities of Oracle AI Database@AWS, bringing enterprise databases and generative AI services closer together.

    The Key to Ethereum's Transformation: The Future of STARK Recursive Proofs in the Next Decade

    Who Holds Cryptocurrency in Iran? A Map Clarifying the Boundaries of the Central Bank, Stock Exchange, and Taxation

    FOMO Co-founder Se Yong in-depth interview: Traders are becoming the new generation of internet celebrities

    Why millions of everyday savers will soon own Bitcoin without ever downloading a crypto app

    Bitcoin is moving into adviser portfolios, spot ETFs, and retirement accounts as traditional finance broadens access to exposure.

    Digital Currency Regulation Established in Russia

    The circulation of digital currency in Russia is now governed by a separate legal regime: the Federal Law of the Russian Federation No. 282-FZ "On Digital Currencies and Digital Rights" was adopted on August 4, 2026. The document defines the status of digital currency, transaction rules, mining proc...
    ...
    Invite friends, get rewards
    Invite to get up to $160 + 40% commission
    Invite friends, get rewardsInvite

    Contents

    NOW

    Latest articles

    2026/08/13

    Digital Currency Regulation Established in Russia

    The circulation of digital currency in Russia is now governed by a separate legal regime: the Federal Law of the Russian Federation No. 282-FZ "On Digital Currencies and Digital Rights" was adopted on August 4, 2026. The document defines the status of digital currency, transaction rules, mining proc...
    NOWNOW
    00.00%--
    THETHE
    00.00%--
    FORMFORM
    00.00%--
    2026/08/13

    Astronomers Discover a New Astrophysical Object: The Black Hole Star

    MIT astronomers have detected an object that combines characteristics of a star and a black hole. It emits 100 billion times more energy than any known star, challenging current astrophysical models.
    STARSTAR
    00.00%--
    SPACESPACE
    00.00%--
    NOWNOW
    00.00%--
    2026/08/13

    The Race for Tokenized Funds: It's Not Just About Scale

    NOWNOW
    00.00%--
    GENIUSGENIUS
    00.00%--
    HSBCHSBC
    00.00%--
    THETHE
    00.00%--
    2026/08/13

    Vitalik's Ten-Year Posting Statistics: Is the Ethereum Roadmap Changing More Frequently?

    NOWNOW
    00.00%--
    BASEDBASED
    00.00%--
    2026/08/13

    web3: Rakuten Integrates XRP into Its Points and Payment Ecosystem

    NOWNOW
    00.00%--
    THETHE
    00.00%--
    REALREAL
    00.00%--
    More

    Latest coin listings on WEEX

    logoCommunity
    iconiconiconiconiconiconicon
    Customer Support:@weikecs
    Business Cooperation:@weikecs
    Quant Trading & MM:bd@weex.com
    VIP Program:support@weex.com
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Customer Support Bot
    • VIP Services
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Customer Support Bot
    • VIP Services
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE

    Where new wealth is made

    Download app

    Sign Up
    h5 logo
    Download