The US 1-3Y Bonds segment experienced notable positive flows on the primary market on Thursday (+€452.64M). The segment pursues the positive trend started with a year-to-date performance of +2.98% with impressive cumulated flows standing at €1.4Bn over the same period. On a one-year timeframe, nearly €20 Bn have been poured to the segment. Defensive investors, or somebody who expects interest rates to raise, will aim to reduce duration and can do so with lower maturity bonds. It seems that the Fed’s decision whether to raise, cut or keep its rates at the same range of 2.25 to 2.5 is eagerly awaited.
The segment includes 22 funds tracking 10 Indices for a total of €40.7Bn of assets under management.