Forget about the bond bloodbath in 1994. This is shaping up to be the worst year in history for bond funds.
Investors have pulled out $72 billion from bond mutual funds this year through the first week of December, according to data from TrimTabs.
This is the first time in nearly a decade that investors have taken more money out bond funds than they’ve put in — and it tops the previous record from 1994 when investors withdrew almost $63 billion. That year, the 10-year Treasury yield rose from just under 6% to over 8%. (Bond yields rise when investors are selling bonds and pushing prices lower.)
Rising interest rates have also been the catalyst for the rush out of bonds this year.