A soaring national debt has added plenty of jitters to a Treasury market already reeling from tariff chaos, but there are signs that relief is coming to long-dated fixed income.
For now, however, investors have piled out of long-term U.S. bond funds at the fastest rate since the early days of the COVID-19 pandemic, according to calculations from the Financial Times. Net outflows from funds with government and corporate debt totaled nearly $11 billion in the second quarter, the FT found using EPFR data, a stark contrast from average net inflows of roughly $20 billion over the past 12 quarters.
While such funds make up a small portion of the $28 trillion Treasury market, the exodus shows investors have become increasingly hesitant about long-term U.S. debt, said Miguel Laranjeiro, investment director for municipal debt at Aberdeen Asset Management.
“Usually, that’s because of fiscal policy rather than monetary…
