June saw record buying into global bond exchange-traded products (ETPs) pushing net flows to their highest level so far this year, according to data from asset manager BlackRock.
Overall, $71.5 billion (€63.4 billion) was added to global ETPs throughout the month, driven primarily by “record-breaking” inflows for bonds, which drew in $46.7 billion of investors’ cash.
According to BlackRock, June’s record buying of bonds is due to the highest inflow month for investment grade ETPs since the firm began records.
Inflows of $21.6 billion throughout the month beat the record set in April by over $8 billion, bringing total net investment grade inflows to $47.1 billion for the second quarter.
The data shows that inflows “overwhelmingly” went towards US-focused investment grade, with buying in eurozone-focused ETPs dropping off after a pick-up in April and May.
Equities flows also rose from fairly flat in May to $46.7 billion last month. While European equites bounced back, with investors adding $3.7 billion, emerging markets suffered outflows of $4.9 billion
Commodity flows dropped to their lowest level of the year with just $4.7 billion of inflows.
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