Over the last 20 years, government debt markets in emerging market economies (EMEs) have grown and matured. Not only has it become easier for foreign investors to participate in these markets, but also the local investor base has deepened. Our findings show that the investor base and size of hedging markets affect the liquidity and resilience of EME government debt markets. In times of stress, a greater presence of domestic banks helps stabilise liquidity conditions, while domestic and foreign non-banks could propagate external shocks. Countries with more developed hedging markets exhibit more resilient liquidity conditions after major shocks.