US Stock Market: US investment-grade bond funds see record weekly outflows as inflation fears rattle markets

US investment-grade bond funds saw record weekly outflows of about 7.1 billion dollars, with a single-day record withdrawal of 8.2 billion dollars on July 20, driven by inflation fears and rising interest rate expectations. Treasury yields climbed sharply, with the benchmark 10-year yield hitting its highest level since January 2025, as oil prices surged nearly 40 percent this month above 100 dollars a barrel on geopolitical tensions in the Red Sea. Traders raised the implied probability of a Federal Reserve rate hike at next week's meeting to about one in three, prompting a broad repricing across global fixed income markets.