Investors Pour $51 Billion Into T-Bill ETFs, Shun Long-Term Bonds

Treasury Bill ETFs have attracted more than $51 billion in inflows since Feb. 27, the most among all fixed-income categories, while ETFs tracking long-term bonds have drawn just $7 billion over the same period, despite long-term bonds offering a higher indicated yield of about 4.7% versus roughly 3.7% for T-Bill ETFs.
The gap reflects investors favoring lower risk over higher yield, since long-term bonds can lose significant value when yields rise while T-Bills are far less sensitive to yield changes. That risk has grown more relevant as the 30-year Treasury yield has risen 70 basis points since Feb. 27 to levels last seen in 2007.