The Rate Ramp and the Foreign Factor

If you harbored any doubt about the biggest story in the markets right now, then one look at the action in the Treasury bond pits (i.e. interest rates) will disabuse you of that uncertainty.

Recent data on bond outflows show that investors in the United States have been dumping bond mutual funds and exchange-traded funds (ETFs). Outflows so far in August have been pegged at $19.7 billion, which is a big jump in outflows from an already big July metric that showed investors pulled out some $14.8 billion during the month, according to TrimTabs.

The current month???s figure is going to be the fourth-highest month on record for outflows. To put the recent selling into perspective, TrimTabs found that since the beginning of June, some $103.5 billion has exited from bond funds.

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