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Investors pull $10 billion from U.S. bond funds amid tariff concerns

Fifth straight week of outflows signals inflation, recession worries

Investors pull $10 billion from U.S. bond funds amid tariff concerns
A bond is a security that indicates that the investor has provided a loan to the issuer
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U.S. bond funds experienced net outflows of $10.07 billion for the fifth consecutive week as investors grew wary of inflation risks following new tariffs imposed by President Donald Trump.

According to LSEG Lipper data, short- to intermediate-term investment-grade funds saw $6.3 billion in withdrawals, while general domestic taxable fixed-income funds lost $2.22 billion. Government and Treasury funds, however, attracted $6.82 billion in inflows.

Meanwhile, U.S. equity funds also faced heavy selling, with net outflows of $10.62 billion, reversing the previous week’s $6.5 billion in net purchases. The technology, health care and consumer staples sectors were among the hardest hit, with net sales of $819 million, $514 million and $348 million, respectively.

Investors also pulled $131.74 billion from money market funds, marking a second straight week of outflows.

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