As the world’s largest bond manager, what PIMCO does is closely watched. So, when they reduced their holdings of U.S. government debt, people took notice. And when they increased their holdings of emerging market debt, that really got some attention.

The waning appetite for for U.S. Treasuries because of unusually low interest rates is a story to watch closely for two reasons. Matthew McCall for Index Universe explains that first, it will lead to higher interest rates in the U.S. to simply attract money back into Treasurys. Secondly, bonds issued by other countries, particular those in emerging markets that offer higher yields, will be in higher demand. []

PIMCO recently reduced holdings in U.S. government debt, while upping emerging market debt exposure to 11%.The largest foreign holder of U.S. Treasuries, China, decreased its holdings for the second straight month. They fell $24 billion, or 2.7%, to $843 billion. []

You, too, can invest in emerging market debt by using ETFs. There are three ways to get exposure to emerging market debt:

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