Intermediate-term bonds have long represented a solid, relatively stable part of many investors' portfolios. Intermediates make up the largest category of bond funds by assets, with $956 billion invested in them. That's why it was a bit of a shock last year when intermediate bond funds lost, on average, 1.4 percent of their value.
But they've rebounded strongly in 2014. Those same funds have returned an average of 4.1 percent through the first half of the year. Unsurprisingly, investors are coming back to intermediate funds, putting $3.48 billion in them in June.
This is all part of a bigger move back into bond funds, which saw net outflows of $37.12 billion last year. Through the first six months of 2014, these funds have taken in flows of $70.53 billion.
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