JPM Mid-Week US Short Duration Update: Inflows gather pace into low-duration bond funds

Research evidence excerpt

JPM Mid-Week US Short Duration Update: Inflows gather pace into low-duration bond funds

Teresa Ho AC (1-212) 834-5087 Molly Herckis (1-212) 622-0899 Global Markets Strategy J P M O R G A N

teresa.c.ho@jpmorgan.com molly.herckis@jpmchase.com JPM Mid-Week US Short Duration

J.P. Morgan Securities LLC Update

Pankaj Vohra (1-212) 834 5292 08 July 2026

pankaj.x.vohra@jpmchase.com

Low-duration bond funds have witnessed a strong start to the year, with AUMs

increasing by about $55bn through May—a 6% gain that has lifted total balances to

$986bn. Year-to-date inflows are running modestly ahead of last year’s pace ($49bn)

and much stronger than in 2024 ($2bn; Figure 1YTDinflowsareruningmodestlyaheadoflastyear’spaceandmaterialystrongerthanin2024). After a brief pause in March, when

flows were essentially flat, investor demand has accelerated meaningfully. Low-duration

bond funds attracted roughly $7bn of inflows in April, followed by an even stronger

$17bn in May—the largest monthly increase of the year and the strongest monthly

inflow since August 2025. Notably, May alone accounted for nearly one-third of all

inflows recorded during the first five months of the year.

Overall, the strength in flows has been broad-based, although credit-oriented strategies

have led the way, capturing roughly 47% of year-to-date inflows, with short-term credit

and ultrashort credit strategies attracting approximately $17bn and $9bn, respectively.

Multi-asset strategies have also seen healthy demand, as ultrashort and short-term funds

added a combined $15bn, representing another 28% of total inflows. Government-

focused funds have seen an uptick as well, with short-term government funds gathering

$11bn year to date and ultrashort government funds adding a further $3bn.