2013 Was a Bad Year For Bond Funds

December 13, 2013 Share Print 0

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.

via CNN

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.