Bond ETF Withdrawals Surge as Investors Brace for Higher Rates
- Funds see sales in November for the first month since June
- Two-year U.S-German yield spread widest since August 2006
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Investors in U.S. exchange-traded funds are selling bonds this month for the first time since June as they prepare for the Federal Reserve to raise interest rates.
They’ve pulled $1.12 billion from U.S. fixed-income funds in November. While the Fed has emphasized it plans to move at a gradual pace, the figures highlight the extent to which bond investors are seeking protection as the prepare for the first increase to borrowing costs in almost a decade.