Investors are pouring capital into US and global bond funds in anticipation of rate cuts from the Federal Reserve.
In the week ending August 28th, a total of $17.69 billion in global bond funds was purchased, with $9.58 billion allocated to US bond funds, reports Reuters, citing LSEG data.
[adinserter block="1"]The numbers represent a six week high and come as investors bet that Federal Reserve Chair Jerome Powell will lower interest rates in the months ahead.
In the US, investors directed $5.42 billion specifically toward US government bonds – the largest allocation since October of last year.
Meanwhile, gold and money markets are maintaining their popularity.
Money markets witnessed $8.18 billion in global inflows, marking four positive weeks in a row.
Gold and other precious metal funds saw $342 million in net inflows, marking three consecutive weeks of gains.
The moves happened as the US stock market declined by about $2.83 billion in the same week.
Meanwhile, real-time data shows Bitcoin ETFs witnessed $277.2 million in outflows over the last five days.
The CME’s FedWatch tool shows 30% of market participants now expect the Federal Reserve to implement a 50 basis points rate cut next month, with 70% expecting a quarter-point cut.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
