Moody’s index of BAA rated company debt dipped to 4.2%, the lowest level since the 1950s, as the benchmark 10-year Treasury yield dipped to a record low below 1.4%.
Recent inflows were concentrated in investment- and speculative-grade debt sectors with U.S. junk leading the way, acquiring $2.4 billion in inflows. U.S. investment-grade bond funds attracted $1.5 billion.
Specifically, according to XTF data, thee iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) saw almost $1 billion in inflows and the iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) brought in $1.24 billion.
HYG has a 6.12% 30-day SEC yield and LQD has a 2.95% 30-day SEC yield.