News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

U.S. government bond ETFs set to receive biggest quarterly inflow in 8 years

06/27/2022 | 07:46am EDT

June 27 (Reuters) - U.S government bond exchange-traded-funds (ETFs) are set to receive their highest inflow in at least eight years, in the second quarter of this year, as investors rush to put money in safer bonds amid fears over recession and higher inflation levels.

According to Refinitiv Lipper data, U.S. government bond ETFs have received $42.4 billion so far this quarter, the highest since at least Sept. 2014. They received $24 billion in the first quarter of this year.

The SPDR Bloomberg 1-3 Month T-Bill ETF, iShares Short Treasury Bond ETF and Wisdom Tree Floating Rate Treasury Fund led inflows so far this quarter, receiving $7.12 billion, $4.39 billion and $3.74 billion, respectively.

Analysts expect central banks' aggressive tightening measures to slowdown the global economies this year, which has deterred investments in riskier assets such as equities and high yield bonds. On the other hand, safer government bonds have gained interest.

Goldman Sachs forecasts a 30% chance of the U.S. economy tipping into recession over the next year - versus 15% earlier - while Morgan Stanley places U.S. recession odds for the next 12 months at around 35%.

The U.S. Federal Reserve earlier this month raised interest rates by 75 basis points, its biggest single rate hike since 1994, and has signalled its commitment to containing price pressures even if it brings about a growth downturn.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Krishna Chandra Eluri)


© Reuters 2022
Latest news "Economy & Forex"
08:07aSplit families still suffer after 75 years of India-Pakistan partition
RE
07:40aRushdie told German magazine his life is now 'relatively normal'
RE
07:40aRushdie told German magazine his life is now 'relatively normal'
RE
07:15aVeteran opposition leader Odinga ahead in Kenya's presidential race- official results
RE
07:10aTrump's Mar-a-Lago, a security 'nightmare' that housed classified documents
RE
07:10aTrump's Mar-a-Lago, a security 'nightmare' that housed classified documents
RE
07:04aGazprom ramps up gas flows to Hungary via Turkstream pipeline, official says
RE
06:50aBroad swathe of China swelters in high temperatures
RE
06:48aUS says India hid Russian origin of fuel shipped to US - India central bank
RE
06:42aShanghai extends weekly COVID-19 testing requirement until end of September
RE
Latest news "Economy & Forex"