Active bond mutual funds recorded net outflows for the first time in recent weeks during the period ending September 18, signaling a potential shift in investor sentiment. Conversely, bond ETFs attracted $12 billion in inflows during the same timeframe, more than offsetting the mutual fund withdrawals for now. Market participants warn that sustained mutual fund outflows could trigger forced bond selling, depressing NAVs and sparking further redemptions in a potential negative feedback loop. While ETFs continue to see steady net inflows, mutual fund investors are considered more sensitive to short-term performance deterioration, making these funds a key indicator of broader fixed-income market stress.