{"id":48756,"date":"2015-06-15T08:40:16","date_gmt":"2015-06-15T12:40:16","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=48756"},"modified":"2015-06-15T08:43:49","modified_gmt":"2015-06-15T12:43:49","slug":"astonishing-lack-of-response-by-fund-investors-to-spike-in-bond-yields","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2015\/astonishing-lack-of-response-by-fund-investors-to-spike-in-bond-yields.html","title":{"rendered":"Astonishing Lack Of Response By Fund Investors To Spike In Bond Yields"},"content":{"rendered":"<p><strong>New York (HedgeCo.Net)<\/strong> Investment Research reports that fund investors have been remarkably unfazed by surging yields on Treasuries and investment-grade corporate bonds.  Bond mutual funds and exchange-traded funds have managed to take in $5.3 billion in June through Friday, June 5 even though these funds are down 0.9% month-to-date.<\/p>\n<p>\u201cThe lack of reaction to the backup in bond yields since mid-April is startling,\u201d said David Santschi, chief executive officer of TrimTabs.  \u201cWe would normally expect investors to be selling hard by now.\u201d<\/p>\n<p>In a research note, TrimTabs explained that the yield on the 10-year Treasury note climbed from 1.85% on April 17 to 2.40% on June 5, an increase of 55 basis points.  Nevertheless, bond mutual funds and exchange-traded funds have taken in $5.3 billion ($1.1 billion daily) in June after losing a scant $850 million ($40 million daily) in May.<\/p>\n<p>\u201cThe contrast between what\u2019s happening now and what happened amid the \u2018taper tantrum\u2019 in mid-2013 has been dramatic,\u201d noted Santschi.  \u201cThe yield on the 10-year note rose 80 basis points in May 2013 and June 2013, which helped trigger the record outflow of $68.6 billion from bond funds in June 2013.\u201d<\/p>\n<p>TrimTabs explained that the lack of selling in the wake of the recent poor performance of bond fund is a negative sign from a contrarian perspective.  \u201cSuch indifference to losses points to higher bond yields ahead,\u201d said Santschi.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) Investment Research reports that fund investors have been remarkably unfazed by surging yields on Treasuries and investment-grade corporate bonds. Bond mutual funds and exchange-traded funds have managed to take in $5.3 billion in June through Friday, June [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-48756","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=48756"}],"version-history":[{"count":3,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48756\/revisions"}],"predecessor-version":[{"id":48759,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48756\/revisions\/48759"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=48756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=48756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=48756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}