Investing.com -- Fixed income funds recorded their strongest weekly inflows in six years during the past week, reaching levels not seen since June 2020, according to Bank of America. Investment-grade, high-yield, government bond, loan, emerging market, and money-market funds all attracted capital.

Investment-grade funds marked their sixth straight week of inflows, with mid-term funds leading the way. Short-term and long-term funds also saw inflows. The inflows spread across the credit curve spectrum for the fourth week in a row.

High-yield funds recorded their eighth consecutive week of inflows. European-domiciled high-yield funds saw stronger inflows in global-focused and euro-focused strategies compared to US-focused funds. High-yield ETFs attracted capital for the fifth straight week.

Government bond funds saw accelerated inflows during the past week, marking the strongest pace in four weeks. Money-market funds recorded inflows for the first time in four weeks.

Global emerging market debt funds attracted capital for an eighth consecutive week, with the past week's inflow being the strongest in six weeks.

Government bond fund flows continued to outpace credit fund flows during the past week. Bank of America expects this pattern to persist as Bund yields remain near 18-year highs.

Overall fixed income funds extended their inflow streak to nine weeks. The bank attributed the broad inflows to an environment of higher risk-free rates combined with low rate volatility.

Equity funds recorded outflows for the eighth consecutive week. Equity ETFs saw their sixth straight week of outflows and the ninth over the past eleven weeks.