Outflows from U.S. stocks swell as investors seek refuge in bonds

RAM Ratings said in line with the downward bias in global interest rates and the subsequent search for yields, domestic bond yields also retreated across the entire maturity spectrum and rating bands in June.

INVESTORS are fleeing U.S. stocks at a rapid clip as ongoing market volatility and trade tensions push them to seek safety among less risky assets such as U.S. Treasurys.

More than $20 billion was pulled from long-term mutual funds and exchange-traded funds focused on U.S. stocks in June, capping the third-worst first half for equity flows over the past 10 years, according to data provider Morningstar LLC. The trend doesn’t appear to be slowing: Investors redeemed more than $11.6 billion from domestic stock funds in the three weeks ended July 18, according to the Investment Company Institute.