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Investors Stay Hungry for Inflation-Protected Bonds / Heavy Fund Inflows Continue - WSJ

edited April 2021 in The Bullpen
Demand for inflation-protected bonds remains high despite a recent decline in Treasury yields, indicating that investors have long-term concerns about the impact of economic growth on interest rates. Investors poured a net $1.2 billion into mutual funds that buy Treasury inflation-protected securities, or TIPS, in the week ended April 21, according to data from EPFR. It was the 29th consecutive week of inflows into such funds, the longest streak since 2010.

Yields of conventional Treasury bonds, which fall when prices rise, have slipped recently as concerns subsided that the Federal Reserve would raise interest rates sooner than projected and foreign investors returned after an early-year exit.

The yield on the benchmark 10-year Treasury note traded around 1.568% Monday, down from 1.749% at the end of March, according to data from Tradeweb.

From: The Wall Street Journal - April 27, 2021

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