On the whole, soft data in last two months has largely disappointed investors who entered the new year with high expectations for the pace of economic growth. Now, market participants are trying to sort out whether the signs of slowing growth are simply a result of cold weather — which could give way to acceleration as temperatures warm — or whether underlying trends are shifting back toward the sluggish growth profile that has largely characterized the economy in the years since the financial crisis.
Amid the murky signs of growth, Treasury yields fell sharply in January, though they came off lows in early February. Investors, meanwhile, have flocked back to bond funds after a 2013 filled with outflows. Bond funds had $4.7 billion worth of inflows in the week ended Wednesday, and have put nearly $26 billion into such funds since the beginning of the year, according to Bank of America Merrill Lynch Global Research.
Amid the murky signs of growth, Treasury yields fell sharply in January, though they came off lows in early February. Investors, meanwhile, have flocked back to bond funds after a 2013 filled with outflows. Bond funds had $4.7 billion worth of inflows in the week ended Wednesday, and have put nearly $26 billion into such funds since the beginning of the year, according to Bank of America Merrill Lynch Global Research.