Investors pull $10 billion from U.S. bond funds amid tariff concerns
Fifth straight week of outflows signals inflation, recession worries
Business Desk
The Business Desk tracks economic trends, market movements, and business developments, offering analysis of both local and global financial news.
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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