The 10-year U.S. Treasury yield surpassed 5% this week, reaching its highest level since 2007, attracting a significant influx of capital into U.S. bond mutual funds and exchange-traded funds. According to Morningstar data, net inflows into U.S. bond mutual funds and ETFs totaled $625 billion year-to-date through August, marking the highest amount for the same period since records began in 2010. Both Pacific Investment Management Company (PIMCO) and Vanguard Group anticipate this inflow rate will accelerate further as investors rebalance their assets from equities to fixed income.