New analysis from Aberdeen shows net sales of short dated bonds globally hit £91bn in the last 6 months vs £29bn in the previous 6 months, an increase of 214%.
Over the last year, the change and pace in investor appetite for short dated bonds becomes even more apparent. Net sales of short dated bonds globally to the end of May 2025 reached £120bn vs a net outflow of -£31bn in the previous year to the end of May 2024.
Commenting on the data Mark Munroe, Investment Director, Global Fixed Income, Aberdeen and manager of the abrdn Short Dated Enhanced Income Fund said;
“Demand for shorter dated fixed income continues to be strong especially in investment grade corporate bonds. Most investor’s central case view is that interest rates will come down gradually from here. Nonetheless, the environment remains highly uncertain due to geo-politics and the potential implications of tariffs on both risk appetite and indeed inflation. Volatility will continue to be higher in longer dated bonds and could increase in higher risk parts of credit markets moving forward. Short dated bonds therefore are proving to be something of a sweet spot right now, with the ability to lock into still attractive yields that are higher than cash rates while keeping volatility low.”
*Source Broadridge GMI as at 18.06.25
