UK investors pulled a staggering £1.2 billion from fixed income funds in April, the fastest pace of bond outflows since the early pandemic panic of April 2020, according to new data from global funds network Calastone.
The sell-off came as President Trump’s April 2 “Liberation Day” tariff announcement sparked global market volatility and raised fears of an economic slowdown, triggering speculation that central banks — including the Bank of England — may need to cut interest rates in response.
“The turmoil in US bond markets has pressured yields around the world,” said Edward Glyn, head of global markets at Calastone. “There are concerns about government finances if the global economy slows as much as predicted.”
It was the second consecutive month of strong outflows from bond funds, following £700 million of redemptions in March. The shift reflects growing unease among investors, who are scrambling to raise cash to meet margin calls and brace for further market swings.
While bond funds suffered, investors flocked to equities — particularly North American stocks — as markets began to price in a potential softening of Trump’s trade policies.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
