Funds into bond ETFs rev back up at end of October
Investors added billions of dollars to highly rated bond exchange-traded funds in the past week, which saw $6.7 billion of inflows, the biggest weekly climb since January, according to BofA Global.
Flows, however, turned negative for high-grade bonds, which saw outflows of $0.22 billion, the biggest drop in seven weeks, according to BofA data.
A jump in longer-duration Treasury bond yields since September, on resilient economic data, has crimped returns in the broader bond market and pressured stocks lower to end October. The total return in 2024 for the benchmark Bloomberg U.S. Aggregate Bond index was below 2% on Friday, according to FactSet.