Treasury bill ETFs attract $51B in inflows as investors shift away from long-term bonds

The bond market’s version of a flight to safety doesn’t look like it used to. Instead of piling into long-dated Treasuries, investors are cramming into the shortest-duration instruments they can find. Treasury bill ETFs, funds that hold government debt maturing in three months or less, have pulled in roughly $51 billion in inflows as money managers trade duration risk for something that behaves a lot more like a high-yield savings account. The poster child for this trend is BlackRock’s iShares 0-3 Month Treasury Bond ETF, ticker SGOV. The fund has attracted approximately $49 billion in net inflows, with assets under management now exceeding $104 billion. On its busiest day in early June 2026, SGOV absorbed $1.8 billion in a single session. Why investors are hugging the short end of the curve Funds like the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) offer yields around 3.5% on a 30-day SEC basis, with bid-ask spreads as tight as 0.01%. That means investors are getting competitive returns with virtually no price volatility and almost zero trading friction. Meanwhile, the long end of the bond market has been getting punished. The iShares 20+ Year Treasury Bond ETF (TLT), the most widel...