Investors are shortening up their duration to the ultra-short fixed income ETFs which were first created about 15 years ago. Originally used for cash management, many investors are looking to these ETFs for security in the economic turmoil flummoxing markets currently. Generally, these assets have been tough to classify but by in large they are of duration of less than a year. SPDR Bloomberg 1-3 Month T-Bill ETF and State Street Global Advisors saw large inflows in the first half of 2022. While these assets generally get an uptick during volatility, they are seeing special attention due to interest rate risk. With inflation setting 40-year records investors want security against the Fed's rapid tightening cycle which is pushing up yields and bond prices lower. This means they are buying ultra-short duration debt with less risk.

Finsum: The latest GDP release will be a huge tell for the Fed because it could stall tightening if we slip into a recession.