Bond Fund Prices Fall For The Second Straight Quarter

Summary

World income funds (-4.65%) turned in the worst performance among the Thomson Reuters Lipper macro groups because of the U.S. dollar’s gaining strength.

The general domestic taxable fixed income funds macro-group gained 0.07%, led higher by High Yield Funds (+0.51%) and Loan Participation Funds (+0.45%).

Municipal debt funds posted a return of 0.88% on average, with both national muni debt funds (+0.95%) and single-state muni debt funds (+0.82%) contributing to the increase.

Investment-grade corporate debt funds (-0.12%) were in the red for the quarter as the longer-term maturity peergroups were negatively impacted by interest-rate risk.

Government/Treasury funds recorded an increase (+0.31%) for Q2, paced by the Inflation-Protected Bond Funds (+0.59%) peer group.