Bond ETF inflows rise as investors seek yield

Bond ETF inflows have increased as investors look for income amid stockmarket volatility and uncertainty around Federal Reserve policy. BlackRock’s Steve Laipply said U.S. bond ETF flows are up sharply from a year ago, with interest centered on Treasury funds and multisector income strategies. The article says falling breakeven inflation rates and elevated real yields are shaping investor demand. Some market participants see shortdated Treasury inflationprotected securities as a possible option for those still concerned about inflation, while others are focusing on income relative to duration risk. Analysts also noted that credit spreads remain tight, which can support bond markets but may also signal limited room for additional risktaking. The discussion comes as the Fed maintains a cautious stance on inflation and the labor market shows signs of slowing in some areas.