US bond funds have reached record inflows in 2026, with $446 billion in net inflows into fixed income ETFs through late September. Taxable bond funds attracted $69 billion in August alone, marking the fourth consecutive month with inflows exceeding $60 billion. The iShares 0-3 Month Treasury Bond ETF (SGOV) and Vanguard Total Bond Market ETF (BND) gathered over $40 billion and $22 billion year-to-date respectively. Short-duration US bonds are dominating the flows as investors capture yields near 5% on Treasuries while avoiding duration risk. Data from VettaFi and State Street Global Advisors confirms that 2026 is shaping up to be a historically anomalous year for fixed income demand.
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