EM debt trading volumes little changed in second quarter, EM traders association says

Sept 29 (Reuters) - Emerging markets debt trading volumes reached $1.46 trillion in the second quarter of 2025, a 3% decrease from the first quarter and a 2% increase from the previous year, data from the Emerging Markets Traders Association showed on Monday.

Local market instruments accounted for 65% of the total, the data showed.

The $1.464 figure compares to $1.441 trillion in the second quarter of 2024, and $1.517 trillion reported in the first quarter of this year, EMTA said.

Mexican, Brazilian and Indian instruments were the most frequently traded in the second quarter, which coincided with U.S. President Donald Trump's imposing tariffs globally and beginning to use tariffs in economic and political negotiations.

The volume of Mexican debt instruments hit $300 billion last quarter while Brazil hit $136 billion and India $101 billion. Singapore and South Africa completed the top five, both with over $50 billion traded, EMTA said.

Two of the five most-traded single bonds were Argentina's 2035 and 2030 issues, according to EMTA.

The U.S. Federal Reserve's decision last week to lower interest rates has triggered bets that investor appetite in higher-yielding emerging market assets will increase through the end of the year.