American Century Diversified Bond Fund

According to Lipper Fund Flow data, investment-grade bond funds saw net outflows of $1.2 billion during the week ended January 27, 2016.

Managing inflation expectations is as important for policymakers as keeping personal consumption expenditure inflation in check.

Investment-grade bond funds saw net outflows of ~$1.5 billion during the week ending February 5 compared to ~$1.2 billion during the week ending January 29.

In December, there weren’t any investment-grade corporate bonds issued for three consecutive weeks due to the interest rate hike, festivities, and holidays.

Investment-grade corporate bonds worth $107.53 billion were issued in the primary market in November 2015.

Investment-grade corporate bonds worth $132.6 billion were issued in the primary market in October 2015. The issuance rose 17.4% from September.

The Fed has a specified numerical mandate for PCE inflation given to it by Congress. The central bank is expected to maintain PCE inflation at 2% in the long run.

With regard to US monetary policy, there’s been a lot of emphasis on the timing of the first increase in the federal funds rate. The path of the funds rate is more important than the first increase.

When the Federal Reserve refers to inflation, it is talking about the rate of change in PCE inflation (or the price index for personal consumption expenditures).