Banks adding USTs: US Rates Research: Flow of Funds

Research evidence excerpt

Banks adding USTs: US Rates Research: Flow of Funds

FICC Research

Interest Rates

29 June 2026

US Rates Research: Flow of Funds

Banks adding USTs

Weekly bond fund inflows moderated to $11bn across sectors

in the holiday-shortened week. Banks securities portfolios

rose again, with large and foreign banks adding USTs. Foreign Demi Hu, CFA +1 212 526 7398

demand held steady, with Japanese buying along with demi.hu@barclays.com

modest gains in Fed custody holdings of USTs. BCI, US

Samuel Earl

+ 1 212 526 5426

Fixed income ETF and mutual fund inflows moderated over the holiday-shortened week samuel.earl@barclays.com

through June 25, with funds taking in $11bn, compared with the prior four-week average pace BCI, US

of $16bn. Aggregate weekly inflows ranked at the 37th percentile versus the past six months,

Anshul Pradhan

and the latest data bring total year-to-date inflows to $322bn, well above $166bn over the same +1 212 412 3681

period in 2025. anshul.pradhan@barclays.com

BCI, US

Demand for short-term government funds improved slightly week over week but remained

modest at the 38th percentile versus its six-month history. Intermediate sector demand

softened, with intermediate-term government and corporate funds at the 23rd and 48th

percentiles, respectively, while mixed intermediate-term funds ranked at the 35th percentiles. At

the long end, flows remained subdued. Long-term government funds had a level of outflows

similar to the prior week, while aggregate long-term flows held near the 38th percentile,

still suggesting limited re-engagement in duration.

Across other sectors, flows were mixed. Mortgage-backed demand softened to the 30th

percentile, while inflation-protected funds also cooled to the 37th percentile after stronger

readings earlier in the month.