The bond market may be in turmoil, but investors don't seem to care.
Even as fixed income yields spike and concerns rise about an ongoing "taper tantrum" type of event, money continues to flow into bond funds.
A net of $5.3 billion in fresh cash has hit bond mutual and exchange-traded funds in June, even though collectively they are down close to 1 percent, according to a tally from market data firm TrimTabs.
"The lack of reaction to the backup in bond yields since mid-April is startling," David Santschi, TrimTabs CEO, said in a statement. "We would normally expect investors to be selling hard by now."
The 10-year U.S. Treasury note, considered a benchmark for the broader fixed income market, touched a 2.45 percent yield Tuesday morning, its highest since Oct. 3. The move has come amid concerns that the Federal Reserve is getting closer to liftoff—though some on Wall Street expect the move to be more like a "crawl"—of its own benchmark funds rate.
If the U.S. central bank does move in 2015, it will be the first time in nine years that the Fed has raised rates, as part of a zero interest rate policy in place since late 2008.
The biggest winner among bond ETFs has been the iShares Core U.S. Aggregate Bond fund, which has taken in about $403.9 million, the fifth most of all ETFs, so far in June, according to FactSet data compiled on ETF.com.
Not all bond ETFs have been winners, though. Investors are showing a conservative mindset, dumping junk and long-duration government bonds: