A frenzy of investor activity in local bond markets helped send trading volumes of overall emerging market debt to a record high of $6,500bn in 2006, according to the latest industry survey.

Participants in the survey by EMTA, the principal trade group for the emerging markets trading and investment community, reported that trading volumes rose 19 per cent from $5,500bn in 2005. Trading in local market instruments hit an all-time high of $3,687bn in 2006, accounting for 57 per cent of overall volume compared with a 47 per cent share in 2005 and 45 per cent in 2004.