BREAKING: Foreign investors pulled ~5 billion out of US corporate bond funds over the last 2 weeks, the most since April 2020. As a result, the 4-week moving average jumped to ~1.2 billion, the highest since the 2020 pandemic. During this time, the high-yield corporate bond ETF, HYG, and the investment-grade corporate bond ETF, LQD, have fallen by -1.2% and -0.9%, respectively. Meanwhile, high-yield corporate bond spreads have risen 1.5 percentage points over the last 2 months, to 4.16%, near the highest in 2 years. However, foreign investors still own ~4.4 trillion, or 27%, of the total US corporate bond market, according to BofA. Will foreigners continue dumping US assets?