Investors are selling billions of dollars of US bonds in a dramatic turnaround signaling fears over America’s fiscal future, according to a new report.
Nearly $11 billion in long-term bonds and corporate debt has been dumped in just three months, reports the Financial Times.
The Q2 2025 selloff ends a five year run of net inflows into long-term US bond funds, with the previous selloff happening back in the first quarter of 2020.
PGIM’s top fixed income strategist Robert Tipp says the shift shows investors are wary of rising inflation and increasing government debt.
“It’s a volatile environment, with inflation still above target and heavy government supply as far as the eye can see. This is driving a skittishness about the long end of the yield curve, and a general uneasiness.”
The news comes amid the passing of President Trump’s “big beautiful” spending bill, which raises the debt ceiling by $5 trillion,…
