US Long-Term Bond ETFs Face Selling Pressure from Individual Investors
Individual investors are increasingly selling US long-term bond ETFs, driven by concerns over US economic volatility and global market instability. The 'ACE US 30-Year Treasury Active(H)' ETF, for instance, has already recorded net sales of 42.2 billion won. On a global scale, the 'iShares 20+ Year Treasury Bond ETF' (TLT) has experienced asset outflows of approximately $2.1 billion.
This trend continues even as gold and stocks see gains, highlighting the poor performance of US long-term bonds compared to other assets. Disappointment over the returns on these bonds has led to increased selling pressure as investors opt not to wait for an expected improvement that has so far failed to materialize, despite initial hopes tied to rate cuts.
Moreover, the weakening expectations of interest rate cuts and policy uncertainties from the Federal Reserve have further depressed investment sentiment in the bond market. Given these dynamics, a rebound in US long-term bond ETFs seems unlikely in the near term. Investors are exploring other opportunities, as the appeal of US long-term bonds diminishes in the current environment.
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