Investors returned to long-term U.S. bond funds in May, according to data from Morningstar (MORN).
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U.S. long-dated bond funds attracted $7.4 billion of investor capital in May, their largest monthly inflow in more than two years. The May inflows were a reversal from April, which saw big outflows amid a sharp drawdown prompted by U.S. President Donald Trump’s tariff regime.
Morningstar said the May reversal shows that investors are once again seeking the safety of high-yielding debt as they weigh uncertainties such as tariffs, inflation, and geopolitics. Inflows into long-term bond funds also show that investors expect weaker growth and more market turmoil ahead and are turning back to bonds as a safe haven, say analysts.
BlackRock Shines
U.S. long-term bonds sold off heavily in April on concerns that U.S. tariffs might spark inflation, while expectations that President Trump’s tax bill could further grow the U.S. deficit. However, many Wall Street analysts say concerns surrounding tariffs and the deficit are starting to ease, which is helping to renew interest in U.S. Treasuries and long-dated bonds.
Morningstar data shows short-term bond funds saw $5.8 billion of outflows in May, while long-term bond funds of 10-year to 30-year maturities attracted $4.2 billion of capital. BlackRock’s (BLK) iShares 20+ Year Treasury Bond ETF (TLT) led with inflows in May with $4.3 billion. BLK stock has declined 1% this year.
Is BLK Stock a Buy?
The stock of BlackRock has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 11 Buy and two Hold recommendations issued in the last three months. The average BLK price target of $1,058.85 implies 5.27% upside from current levels.
