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 continue to rise. The report, dated January 21, 2025, highlights a "modest preference for the long end over the front end," indicating a curve flattening bias. November's Treasury International Capital (TIC) data revealed significant UST selling from the Cayman Islands, amounting to $16 billion, while Japanese private investors showed a buying interest of $7 billion. Despite overall net selling of $12 billion in USTs from private and official sources combined, foreign banks expanded their balance sheets by $439 billion, driven by cash increases and deposit growth. The report also notes a decline in the Federal Reserve's UST custodial holdings, potentially linked to foreign exchange intervention activities amid a strong U.S. dollar.