Reported 9 months ago
According to Sina News on June 24, 2024, American investment-grade bonds have seen 20 consecutive weeks of net inflows, indicating that the market believes the interest rate cycle has come to an end and expects a rate cut. With the Federal Reserve significantly raising interest rates, bond yields have reached historically high levels, making bond market investments more attractive. The increase in funds into investment-grade bond funds and ETFs underscores market expectations of rate cuts, prompting many to buy investment-grade bonds heavily. This trend is also observed in Taiwan, with the recent popularity of investment-grade corporate bond ETFs, such as Cathay Investment Grade Corporate Bonds (00725B), growing by nearly 20% in scale.
Source: YAHOO