Investor Flows – Fleeing to Safety

US Government bond funds have become the destination of choice for investors as stocks tumble and the Fed works to correct inflation. 

The government funds getting the most attention are those targeting shorter term maturities. 

The flow spread between Nominal USTs and TIPS has continued to widen as TIPS see massive outflows multiple weeks in a row.

Inflation friendly funds saw overwhelming out-flows led by TIPS totalling nearly $5 billion on a rolling 1-week basis. 

Credit flows were mixed with High Yield funds gaining $1.24 billion where Investment Grade lost $1 billion. 

TABLES

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