Investors are pouring capital into US and global bond funds in anticipation of rate cuts from the Federal Reserve.
In the week ending August 28th, a total of $17.69 billion in global bond funds was purchased, with $9.58 billion allocated to US bond funds, reports Reuters, citing LSEG data.
The numbers represent a six week high and come as investors bet that Federal Reserve Chair Jerome Powell will lower interest rates in the months ahead.
In the US, investors directed $5.42 billion specifically toward US government bonds – the largest allocation since October of last year.
Meanwhile, gold and money markets are maintaining their popularity.
Money markets witnessed $8.18 billion in global inflows, marking four positive weeks in a row.
Gold and other precious metal funds saw $342 million in net inflows, marking three consecutive weeks of gains.
The moves happened as the US stock market declined by about $2.83 billion in…
