Almost $20B flees bond funds in August so far


Outflows from U.S. bond mutual funds and ETFs have risen to $19.7B in August from $14.8B in July, TrimTabs says, making this month's figure so far the fourth-highest on record.

Since the beginning of June, $103.5B has left bond funds, or 2.7% of total assets.

The sell-off in bonds, which has been prompted by fears of Fed tapering, has sent Treasury yields higher, with the 10-year hitting 2.871% today, the highest for just over two years.

"We are concerned that the Fed is starting to lose control of the bond market, which is not good news for the stock market or the highly leveraged U.S. economy," TrimTabs said

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Comments (4)
  • American in Paris
    , contributor
    Comments (5495) | Send Message
     
    The US economy is not highly leveraged and the rise in interest rates reflect an improving economy, not tight money.
    19 Aug 2013, 06:04 AM Reply Like
  • th3decider
    , contributor
    Comments (481) | Send Message
     
    HAHAHAHA,,, oh man,, that's a good one dude. Here is a book recommendation I think you will like:

     

    "Dow, 30,000 by 2008" Why It's Different This Time - by Robert Zuccaro

     

    You can buy it used on Amazon for 12 bucks.
    19 Aug 2013, 11:30 AM Reply Like
  • Michael Parmar
    , contributor
    Comments (247) | Send Message
     
    Rising rates / bond sell off includes capital exit from US. One aspect of current fed QE was to redirect it away from this flow;I covered this . way back in Feb.
    19 Aug 2013, 08:43 AM Reply Like
  • Marco Mazzocco, CFA
    , contributor
    Comments (193) | Send Message
     
    all hands on deck at Pimco today.
    19 Aug 2013, 01:19 PM Reply Like
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