Exchange traded fund investors are dumping Treasury bond exposure at their quickest pace in over a year ahead of rising expectations for the Federal Reserve’s first interest rate hike in almost a decade.
In November, among the top ETF redemptions, the iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY) saw $1.4 billion in net outflows, SPDR Barclays High Yield Bond ETF (NYSEArca: JNK) experienced $1.0 billion in outflows, iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) lost $805 million in outflows, SPDR Barclays 1-3 Month T-Bill (NYSEArca: BIL) saw assets drop by $552.8 million and iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) saw $419.5 in outflows, according to ETF.com. [Bond ETFs, Duration, Maturity, and Rising Rates]
Money managers redeemed $4.1 billion from U.S. fixed-income funds in November, the most since September 2014, reports Wes Goodman for Bloomberg. [Bond ETF Outflows Picking Up]
Meanwhile, Treasury bonds declined 1.1% over the past month, the worst performer among 26 bond markets tracked by Bloomberg and the European Federation of Financial Analysts Societies. Over the past month, IEF dipped 0.9% and TLT fell 2.1%.
Meanwhile, the benchmark 10-year Treasury yield was hovering around 2.22% Monday.