US Rates Research: Flow of Funds: Demand steadies

Research evidence excerpt

US Rates Research: Flow of Funds: Demand steadies

FICC Research

Interest Rates

15 June 2026

US Rates Research: Flow of Funds

Demand steadies

Weekly bond fund inflows moderated to $14bn from recent

highs. Front-end and credit flows remained resilient, while

the long-end stabilized at weak levels. Large banks added Demi Hu, CFA +1 212 526 7398

USTs while small banks drove added MBS. Japanese pension demi.hu@barclays.com

demand rebounded in May, though Fed custody fell amid BCI, US

a stronger USD. Samuel+ 1 212 526Earl5426

samuel.earl@barclays.com

Fixed income bond ETF and mutual fund inflows moderated over the five days through June 11, BCI, US

with funds taking in $14bn, compared with the prior four-week average pace of $18bn. Anshul Pradhan

Aggregate demand ranked at the 52nd percentile versus the prior six months, with +1 212 412 3681

demand across the front end and intermediate sectors remaining constructive. This brings anshul.pradhan@barclays.com

year-to-date cumulative inflows to $296bn, well above the $152bn over the same period in 2025. BCI, US

Short-to-intermediate term government funds held firm at around the 60th percentiles relative

to their six-month history. Flows into credit bond funds picked up, with short-term corporate

funds at the 87th percentile and intermediate-term corporate funds improving to the 70th

percentile. At the long end, flows rebounded modestly but remained mixed overall. Long-term

government funds improved to the 28th percentile after extreme weakness in prior weeks but

still saw outflows over the past week, while long-term corporate funds saw more stable demand

at the 64th percentile. Aggregate long-term flows rose to the 47th percentile, suggesting

some stabilization but not a decisive shift back to extend duration.