April 23, 2021

bond

Investors plough money into US inflation-protected bond funds

Funds that hold inflation-protected bonds are enjoying their longest streak of inflows in more than a decade, as investors gird themselves for an increase in consumer prices as the US economy recovers.

Another $1.2bn flowed into funds that buy US Treasury Inflation-Protected Securities, or Tips, in the week ended Wednesday, according to data provider EPFR — the 29th consecutive week of net inflows. That took the total for the year to date to $14.4bn.

The current run of inflows is the longest such stretch since the aftermath of the global financial crisis, when Tips funds recorded uninterrupted growth from December

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Buttonwood – The Fed and the bond markets | Finance & economics

JEROME POWELL does not want you to misunderstand him. The Chair of the Federal Reserve knows that communication is a big part of how monetary policy works. Mr Powell speaks plainly. He is not an economist, but that probably helps, because he is less likely to resort to confusing jargon. His messages at the Fed’s press conference on March 17th were admirably clear: no change in the main policy settings; no change in Fed guidance about future shifts in policy; and no real concerns about jumpy government bond markets.

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