U.S. bond funds posted a net outflow in the week to Nov. 24 as investors raised bets that the Federal Reserve would become more aggressive in normalizing monetary policy to fight inflation after President Joe Biden nominated Jerome Powell as chairperson for a second term. According to Refinitiv Lipper data, investors sold U.S. bond funds worth a net $158 million, the first outflow since the week to July 14.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, rose to 0.687 percent on Tuesday, its highest level since early March 2020.
