NEW YORK, June 30 (Reuters) - Investors are pulling out record amounts of money from bond-related funds as concerns mount over when the Federal Reserve will begin reining in its stimulative policies, according to TrimTabs Investment Research.
Bond mutual funds and exchange-traded funds (ETFs) together lost $79.8 billion in June through June 27, according to TrimTabs, an outflow that was nearly double the previous record of $41.8 billion reached in October 2008 during the height of the financial crisis.
TrimTabs, an investment research firm, said bond mutual funds lost $70.8 billion in the month while bond ETFs shed $9 billion.
Markets have been highly volatile since Fed Chairman Ben Bernanke signaled earlier this month that the central bank may soon lessen its bond-buying program if economic growth meets its targets.
While subsequent comments from Fed officials attempted to assuage concerns that the accommodative policies would end soon, benchmark U.S. Treasuries suffered their worst quarter since early 2012. Yields shot to near two-year highs.
'From a contrarian perspective, all this selling suggests bond yields are likely to stabilize or decline over the near term,' TrimTabs wrote, though it added that markets would likely continue to be driven by central bank policy more than fundamentals.
The firm also wrote that the stock market-- where the S&P 500 fell 1.5 percent in June, breaking a seven-month streak of gains-- 'has more work to do on the downside in the near term,' citing continued inflows into equity-based ETFs despite market volatility, which it said was a cautionary sign.
(Reporting by Ryan Vlastelica; Editing by Diane craft) Keywords: INVESTING FUNDFLOWS/TRIMTABS
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