Funds in bond ETFs rise again at the end of October

On November 6, 2024By Littum

Investors added billions of dollars to highly rated bond exchange-traded funds in the past week, which saw $6.7 billion in inflows, the biggest weekly increase since January, according to BofA Global.

However, flows turned negative for high-quality bonds, which saw outflows of $0.22 billion, the biggest decline in seven weeks, according to BofA data.

A jump in longer-dated government bond yields since September, on the back of robust economic data, has squeezed returns in the broader bond market and pushed stocks down into late October. The 2024 total return for the benchmark Bloomberg US Aggregate Bond index was below 2% on Friday, according to FactSet.