Asia ex-Japan bond funds saw the heaviest net outflow year-to-date in May, as investors were deterred by lower expected returns amid rising US interest rates, with even lower risk paper such as government bonds being shunned.
Net outflows from bond funds totalled US$6.3 billion for the four weeks up to May 25, data from EPFR Global shows. The bulk of redemptions came from investment grade bonds, or those that are rated BBB- and above by ratings agency S&P, and Baa3 and above by rival Moody’s.
