Exchange-traded funds (ETFs), which are dedicated to treasury bonds, saw the biggest decline in investor inflows since 2020.
According to a recent Bloomberg report, more than $1.8 billion exited the largest treasury ETF, the iShares 20+ Year Treasury Bond ETF last week, which was the largest withdrawal recorded since March 2020.
* The iShares 20+ Year Treasury Bond ETF tracks the investment results of an index comprised of US Treasury bonds with remaining maturities greater than 20 years.
The fund's price had fallen more than 3% in the previous week and another 1.2% in the five days ending on Friday (August 11).
Sentiment towards long-dated bonds declined over the past month following expectations that the Federal Reserve (Fed) will maintain high interest rates for a longer period in an effort to lower inflation.
As a result, bond yields with the longest maturities soared last week, dampening demand for the sale of 30-year treasuries.
Analysts believe that the fall follows a delayed reaction to Fitch's downgrade and the recent Bank of Japan (BOJ) announcement.
US 10- and 30-year treasury yields are currently hovering around their highest levels since November.
