LONDON, July 1 (Reuters) - Emerging bond markets took in $29 billion in June, the highest monthly total since April 2013, the Institute of International Finance, a global financial industry group, said in its monthly report.
Portfolio investments into emerging markets last month totalled $36 billion, of which equity investment flows accounted for $7 billion, the IIF said in a report released late on Monday.
That total is down slightly from May’s $38 billion but up from $28 billion in April, the IIF estimated.
“According to our models, nancial developments were quite favourable for EM portfolio investments in June: global risk appetite picked up further, EM stock markets climbed another 2 percent ... ” the report said.
It added that bond investment flows were also supported by the high volume of primary issuance from emerging borrowers who raised $56 billion in June.
The IIF figures confirm other data sources indicating strong inflows in emerging debt. Fund tracker EPFR, for example, showed a 13-week-long inflow streak for bond funds.
Emerging-market hard currency bonds returned 9 percent in the first six months of 2014. Equity returns were around 5 percent.
Reporting by Sujata Rao; Editing by Larry King