According to a recent report by BofA Global Research, U.S. fixed income funds have experienced robust inflows, particularly favoring long-term U.S. Treasuries (USTs), as interest rates rise. The report, dated January 21, 2025, highlights a curve flattening bias, with a modest preference for long-end over front-end USTs. This trend is supported by futures positioning, which indicates a net out-of-the-money (OTM) position in longs and flatteners. Notably, foreign banks expanded their balance sheets by $439 billion, driven by cash increases, while November's Treasury International Capital (TIC) data revealed significant UST selling from the Cayman Islands, offset by Japanese private investors' buying interest. "US fixed income funds strong inflows continued with a bias toward long-end USTs," BofA analysts note, underscoring the ongoing demand for long-term securities amid a strong U.S. dollar and potential FX intervention activities.