The Strategist

Bond ETFs attract record $39 bln in July



08/05/2024 - 03:20



According to Matthew Bartolini of State Street Global Advisors, bond ETFs saw a record influx of $39 billion in July, reports MarketWatch.



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He stated that investors were particularly interested in government securities with medium and long-term maturity, as well as corporate loans.

They were apparently trying to invest in bonds with decently high yields, according to Bartolini. With inflation decelerating, the US Federal Reserve (Fed) could potentially lower interest rates in September.

Analysts at Ned Davis Research observed that the situation seems grave. If the Fed decides to decrease rates, bond investors will feel relieved. Otherwise, if the persistent inflation continues, they may face financial difficulties once more.

During July, shares of the well-liked iShares Core U.S. Aggregate Bond ETF, which follows the progress of a diverse selection of high-quality U.S. bonds, experienced their biggest increase of the year.

source: marketwatch.com