Emerging markets saw a significant influx of foreign investment in May, marking the seventh consecutive month of net inflows. According to the Institute of International Finance (IIF), non-residents added $5.5 billion to emerging market portfolios in May. However, the data showed a divergence in asset classes, with a $6 billion net outflow from emerging market stocks and an $11.5 billion inflow into bonds. This trend highlights investors' preference for bonds amid persistently high U.S. interest rates. Additionally, Bank of America citing EPFR data reported $17.8 billion inflows to bonds and $10.7 billion inflows to stocks in the week leading to Wednesday. Notably, there have been 16 days in a row of net inflows.