Record Fund Outflow After Fed Signals Reduced Asset Purchases

Investors pulled a record amount out of global bond fund this week, fresh evidence that the move away from fixed income continues to gather pace.

A total of $23.3bn was drawn out, the highest weekly outflow figure on record, according to data from EPFR Global, the fund flow data provider. U.S. funds were the worst hit, with withdrawals totaling $10.6bn.

Fed Reducing Asset Purchases

Investors have increasingly moved away from bonds since May 22, when Federal Reserve Chairman Ben Bernanke gave the first signal that the U.S. central bank would begin reducing its asset purchases later this year. Yields on 10-year U.S. Treasuries have risen sharply...