Bonds Are Suddenly Getting Love From Investors Hedging Recession
- Fund flows among biggest ETFs favoring bonds by most in years
- After brutal loss, yields high enough to draw in haven seekers
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Investors plagued by fear and shunning stocks are rediscovering a time-honored antidote: U.S. government bonds.
That may seem surprising, given that the Treasury market has been battered by its worst losses on record this year. But with yields holding at the highest in years, the Federal Reserve on course to raise interest rates aggressively in the face of surging inflation, and growth sputtering overseas, cash is flowing back in as investors seek to protect against the risk that the economy will tumble into a recession -- pulling the stock market further down with it.