Global bond funds attracted $23 billion in recent weeks, driven mainly by appetite for US high-yield debt, while equity fund inflows slowed to $33 billion. Taxable-bond funds recorded $72 billion in inflows in June 2026 alone, pushing total bond market assets past the $7 trillion mark. High-yield bonds attracted nearly $7 billion in a single reporting period in April 2026. This rotation into high-yield bonds, which offer equity-like returns with a contractual income stream, signals a weakening of the risk-on trade heading into the second half of 2026.
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