It is the largest outflow since the pandemic struck at the beginning of 2020 and constitutes a clear shift after three years in a row with net inflows of approximately 20 billion dollars per quarter, according to the newspaper.
The funds with long government bonds from the USA are often used by institutional investors and are an indicator of how the market is moving. The actual transactions on the bond market are considerably more extensive.
The dumping of USA bonds with long maturities has gained momentum since President Donald Trump presented a contentious budget with large tax cuts, which are estimated to increase the USA's already large national debt with thousands of billions of dollars during the next decade, reports Financial Times.
According to the White House, the debt problem will be mitigated by revenues from tariffs and higher growth.
