As in the previous month, euro-denominated bonds were the most sold-off assets, with net outflows of both government bonds and corporate bonds setting new records, even though dollar-denominated investment-grade corporate bond funds continued to enjoy net inflows. The sell-off coincided with significant yield rises for European government bonds and high yield bonds. For AAA-rated bonds, the yield rise in June was the steepest in about five years.
High yield bonds, for their part, saw their first net outflows in five months, probably on the back of a Fed rate rise edging nearer. Interestingly, Asian bonds, both in local currency and in dollars, were the only asset class attracting money in June.
