Bond mutual funds are headed for record redemptions in 2013 amidsignals the U.S. Federal Reserve will reduce its stimulus.
Investors have removed $70.7 billion so far this year from bondfunds, TrimTabs Investment Research said today in an e-mailedstatement. Unless the trend reverses, the redemptions would surpassa record $62.5 billion that investors removed from bond mutualfunds in 1994, according to TrimTabs.
Investors have been pulling money from bond funds since May,when Federal Reserve Chairman Ben S. Bernanke first hinted that thecentral bank might begin scaling back its unprecedented assetpurchases. The yield on the 10-year Treasury note is 2.8 percent,up from 1.93 percent on May 21, the day before Bernanke spoke aboutthe possibility of tapering its stimulus.
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