Emerging market bonds lure investors

SINGAPORE - Emerging-market bond funds received an unprecedented $1.8 billion in the past week, lifting 2010 inflows to a record, as high-yielding debt attracted global investors away from stocks, according to EPFR Global.

Currencies in emerging markets have appreciated this month, boosting returns on debt, and at the same time helping to curb inflation and preserve the fixed payments on bonds. Investors in global equities pulled out $6.2 billion in the week to April 14 on prospects accelerating economic growth will prompt policymakers to withdraw stimulus measures.

Investment in developing nations' bonds reached $10.4 billion, exceeding an all-time high in 2005, the Massachusetts-based research company said in an e-mailed statement.