Investors returned to long-term U.S. bond funds in May, according to data from Morningstar (MORN).
Confident Investing Starts Here:
U.S. long-dated bond funds attracted $7.4 billion of investor capital in May, their largest monthly inflow in more than two years. The May inflows were a reversal from April, which saw big outflows amid a sharp drawdown prompted by U.S. President Donald Trump’s tariff regime.
Morningstar said the May reversal shows that investors are once again seeking the safety of high-yielding debt as they weigh uncertainties such as tariffs, inflation, and geopolitics. Inflows into long-term bond funds also show that investors expect weaker growth and more market turmoil ahead and are turning back to bonds as a safe haven, say analysts.
BlackRock Shines
U.S. long-term bonds sold off heavily in April on concerns that U.S. tariffs might spark inflation, while expectations that President Trump’s tax bill could further…
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