Investors fled U.S. bond funds, but Treasuries may get relief
Briefly

Recent bond fund outflows signal a growing investor caution regarding long-term U.S. Treasury securities amid soaring national debt. In the second quarter, outflows reached nearly $11 billion, contrasting sharply with previous inflows. Fixed-income experts suggest that regulatory changes could stabilize the market, while others advise caution, stating that recent data are volatile and reflect mere sentiment rather than long-term trends. The yield on 30-year Treasuries has risen amid concerns, highlighting the prevailing uncertainty in the fixed-income sector.
A soaring national debt and recent outflows indicate a growing investor wariness towards long-term U.S. Treasury bonds, reflecting concerns over long-term fiscal policy.
Despite a significant recent withdrawal from long-term U.S. bond funds, some experts remain hopeful that loosening capital requirements will stabilize the market.
Recent outflows from bond funds totaled nearly $11 billion in Q2, contrasting sharply with previous net inflows, signaling a shift in investor confidence.
While recent bond fund exits seem worrisome, experts emphasize that such fund flows are often volatile and may not predict long-term market trends.
Read at Fortune
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