Global bond fund inflows have accelerated, with $8B added in the last month. Investing in bond funds benefits from favorable currency moves against emerging market equities. However, it is worth noting that 50% of the bonds in this fund are not ranked, so take the average quality level with a bit of caution. On the other hand, signals that inflation is picking up meaningfully may result in the opposite. Strong demand in the secondary bond market supports NAV growth in popular ETFs, affirming the attractiveness of investing in bond funds during uncertain equity earnings seasons.
