Flows into investment-grade bond funds were negative for the week ended December 16. The investment-grade bond funds saw record net outflows of $5.1 billion during the week.
Treasury yields have risen since the Federal Open Market Committee (or FOMC) meeting on October 27–28. The rise in short-term yields was higher than the rise in long-term yields.
The first four months of 2015 have seen yields on investment-grade corporate bonds falling. There’s been a safe-haven demand for these bonds due to the higher yield they’re providing.
Investment-grade corporate bonds are debt instruments rated BBB- and above by rating major Standard & Poor’s. Other rating agencies have their own scale.
