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Long Treasury ETF Posts Record Outflow in Duration Rotation

  • iShares 20+ year Treasury Bond ETF hit as Fed taper nears
  • Foreigners, pension funds seen bidding up long-dated debt
The U.S. Treasury building stands closed in Washington D.C., U.S., on Thursday, Oct. 3, 2013. The first face-to-face talks between President Barack Obama and congressional leaders failed to break the budget logjam as a partial U.S. government shutdown entered its third day.
Photographer: Julia Schmalz

Some investors are paring exposure to longer-maturity U.S. debt as the Federal Reserve moves closer to normalizing borrowing conditions in the midst of a leadership transition.

Money managers pulled $1.2 billion from the iShares 20+ year Treasury Bond ETF last week, the most on record, and the second-largest withdrawal among U.S.-listed exchange-traded funds across asset classes.