Investors fled US mortgage bond funds at historic levels over the past three weeks, Bloomberg reported Monday, with outflows ranking among the seven worst since the start of 2021. The Bloomberg US Mortgage Backed Securities Index posted its second-worst performance on record in September. The selling followed a spike in Treasury yields to multi-decade highs, fueled by surging oil prices, inflation concerns, and expectations of Federal Reserve rate hikes.
US mortgage bond funds suffer one of worst outflows since 2021
Investors fled US mortgage bond funds at historic levels over the past three weeks, with outflows ranking among the seven worst since 2021, as surging interest rates spurred a flight from volatility.
Why it matters: Mortgage bonds are where rising Treasury yields meet household borrowing costs; the Bloomberg US Mortgage Backed Securities Index posted its second-worst September on record, and the selling followed Treasury yields to multi-decade highs.
Data as of Monday, October 12, 2026: the Bloomberg article was opened via a live-browser read but sits behind a paywall, so the facts above rest on the headline, lede, and visible summary elements only; exact outflow figures are unconfirmed until a readable copy is available.
Sources
- US Mortgage Bond Funds Suffer One of Worst Outflows Since 2021 · Bloomberg Markets · 2026-10-12