Anyone who shorted bond ETFs is feeling pretty smart right about now. After last week’s awkward fed comments, and the taper tantrum that followed, they’re also seeing Fed chairman Ben Bernanke as their best friend.
Investment research firm TrimTabs reported Wednesday that U.S.-listed bond mutual funds and exchange-traded funds have lost an all-time record $61.7 billion in June through Monday.
This outflow far exceeds the previous record monthly outflow of $41.8 billion at the height of the financial crisis in October 2008.
“The unprecedented liquidation of bonds this month is a dramatic departure from recent trends,” David Santschi, chief executive officer of TrimTabs, said in a statement. “Before June, bond funds had posted inflows for 21 consecutive months.”
TrimTabs attributed the selling to a combination of steadily rising yields and hints from global central bankers that monetary stimulus may be scaled back in the future.