One-year Treasury note yields are about a percentage point higher than those on 10-year bonds.
That has meant global investors can avoid the relatively less liquid, longer-tenure bonds just for the sake of extra yield and premium.
LSEG Lipper data shows U.S. short-term bond funds have outperformed this year, delivering a gain of 2.2% in price terms compared with an average 2.1% dip in long-term bond funds.
Most analysts expect short-term bond funds to continue to lure more money in the months ahead.
"We are anchoring portfolios with the higher yielding short-term bonds.
Persons:
Dado Ruvic, Adam Coons, SPDR, MATURITIES, Matt Dmytryszyn, Jeff Klingelhofer, Klingelhofer, Winthrop's Coons, Patturaja Murugaboopathy, Gaurav Dogra, Vidya Ranganathan
Organizations:
REUTERS, Morningstar, Treasury, Reuters, Winthrop Capital Management, Federal Reserve, SPDR Bloomberg, Thornburg Investment Management, Thomson
Locations:
Telemus, Bengaluru