According to Strategas, exchange-traded funds with passive management strategies (ETFs), which invest clients' money in bonds, attracted $39 billion in July. dollars – the most in history.
This came amid a rally in US Treasuries, with two-year and 10-year yields falling 46 and 34 basis points in July, respectively, on softer economic data and the market's perception that more rate cuts are ahead.
“People want bonds. Investors are trying to take advantage of the fact that interest rates are starting to come down, so you're getting some of the price appreciation," said Todd Sohn, ETF strategist at Strategas.
More than $2 billion flowed into the iShares Core US Aggregate Bond ETF in July. dollars, and to the iShares Broad USD High Yield Corporate Bond ETF – 2.9 billion. dollars.
Bloomberg also notes that corporate bond trading volumes have increased as demand has recently outpaced even the increased pace of new debt issuance. This is said to have prompted money managers to go to the secondary market and get the securities they want to buy.
