US bond funds have recorded a record inflow of investment
The net inflow of investors' funds into US bond funds amounted to US$22.5 billion, which is the highest figure since 2007.
Funds that invest in corporate securities received US$5.5 billion, while another US$7.5 billion was invested in funds that finance government debt securities. Garbage bond funds attracted US$8.5 billion, slightly below the US$10 billion record set in April.
Experts note that the inflow of funds was a consequence of the migration of investors from money market funds, which, according to the Investment Company Institute, over the past week lost US$36 billion. The outflow was mainly due to funds that invest only in government debt securities.
The ultra-soft policy of the Federal Reserve, which collapsed the yield of government bonds, stimulates the migration of investors into more risky assets, which can still bring money. Experts remind that the regulator now buys ETFs investing in corporate securities, and the inflow of investors' funds into them has recently been a consequence of expectations of a fall in yield.
On Monday, Amazon placed three-year bonds for US$10 billion at a record low rate of 0.4% for the U.S. market, with demand three times higher than supply. The previous record of 0.45% was set by Apple, IBM and Walt Disney in 2012/2013.
Since March, the average yield of investment grade bonds has fallen by more than 2%, and a number of market participants fear that the decline in the attractiveness of reliable securities threatens to support further growth in investment in garbage bonds, which in the future creates risks for the financial system.