Rising yields aren’t scaring off investors. Why money is still pouring into bond funds.

Despite a significant increase in Treasury yields, which typically makes bonds less attractive, investors continue to pour money into bond funds. This trend suggests that economic uncertainties and a search for safety are driving this behavior. The influx of capital into these funds indicates that investors remain cautious about the potential risks in riskier asset classes like stocks, even as yields rise. This dynamic underscores a broader trend of risk aversion in the market, which could have implications for interest rates and overall economic growth.