Investors fled U.S. bond funds, but Treasuries may get relief

Michelle Bowman, vice chair for supervision at the US Federal Reserve, Jerome Powell, chairman of the US Federal Reserve, Lisa Cook, governor of the US Federal Reserve, and Adriana Kugler, governor of the US Federal Reserve, left to right, during the Federal Reserve Board open meeting in Washington, DC, US, on Wednesday, June 25, 2025. (Credit: Al Drago—Bloomberg via Getty Images)

• While bond funds make up a small portion of the $28 trillion Treasury market, recent outflows show investors have become increasingly hesitant about long-term U.S. debt. Fixed-income experts told Fortune they’re optimistic, however, about how loosening capital requirements can help major lenders act as a stabilizing force.

A soaring national debt has added plenty of jitters to a Treasury market already reeling from tariff chaos, but there are signs that relief is coming to long-dated fixed income.