Investors are pulling the plug on a strategy tracking long-dated Treasuries as U.S. stocks trade near all-time highs.

The
iShares 20+ Year Treasury Bond exchange-traded fund, ticker TLT, posted its worst week of outflows on record, with traders yanking more than $1.2 billion, according to data compiled by Bloomberg. The 10-year U.S. government bond yield soared in the span, approaching 2%.

Read:
Treasuries’ Top Trade at Risk as Long-Dated Yields Take Flight

“Much of the recent sell-off is undoubtedly a function of the increased prospect for the economy’s successful soft landing and accompanying inflationary ambitions,” as well as progress on the trade war, Ben Jeffery, a strategist at BMO Capital Markets, wrote in a note to clients last week. “Even if our underlying cynicism leaves us apprehensive that will ultimately play out, the chance could inspire further long-end cheapening over the near term.”

A thawing in trade tensions between the U.S. and China and the anticipation of improving economic growth have boosted prospects for risk assets. That’s a reversal of fortunes for TLT, which saw investors
pile in all year amid global growth fears and trade war angst. While President Donald Trump lately
downplayed the amount of progress made in the negotiations, the S&P 500 Index still hovers near a record high.

Elsewhere, the
iShares 7-10 Year Treasury Bond ETF, or IEF, had an outflow of about $553.3 million last week, data compiled by Bloomberg show.

“The risks of recession are decreasing,” Chris Gaffney, president of world markets at TIAA, said by phone. “Investors are now looking at shortening up duration and perhaps the next move that could happen, if anything, may be an interest-rate increase by the Fed.”

— With assistance by Luke Kawa