IIF: More hawkish Fed and renewed oil volatility could tighten dollar liquidity and raise EM risk hurdle.

EM Debt Issuance

• EM sovereign issuance hit roughly USD 170 bln in H1; net issuance topped USD 100 bln.
• First-half debt flows stood at USD 179.8 bln, above USD 141.7 bln in H1 2025.

EM Portfolio Flows

• Non-resident investors pulled net USD 17.8 bln out of EM portfolios in June due to large equities outflow.

EM Equity Flows

• EM Asia equity outflows hit USD 40.5 bln in June.
• EM Asia net outflows of USD 27 bln in June offset net inflows in other regions.
• China equity shifted to USD 14.0 bln outflow in June from USD 8.1 bln inflow in May.
• Korea net equity outflows from non-resident investors hit USD 30.5 bln, highest in at least 26 years.