EM and DM bond funds continued to see outflows as UST volatility persisted

Fund flow data for the week ended 24 June showed that both developed-market (DM) and emerging-market (EM) bond funds continued to see outflows related to US Treasury (UST) volatility. 

However, outflows slowed as institutional investors started to add to their exposure to bond funds even as retail investors continued to pull money out. 

EM bond funds saw a fifth consecutive week of outflows, as both EM local-currency (LC) and EM hard-currency (HC) bond funds witnessed outflows. These funds presented a contrasting picture, however, with outflows from EM HC funds slowing, while EM LC funds started to see outflows again this past week, after small inflows last week.

In DM bond funds, outflows from both HG and HY fund bonds funds slowed. US-dedicated HY funds saw small inflows, mainly institutionally driven.