Investors have poured almost $16bn in to US corporate bond funds this month, underscoring how signs of easing inflation have helped brighten sentiment after a brutal sell-off in much of 2022.

Funds holding high-grade bonds have garnered $8.6bn of new client money in the month to November 23, while those focused on riskier junk-rated debt have posted net inflows of $7.1bn. The combined figure is set to be the highest monthly inflow since July 2020 if the trend holds in the final week of November, according to data provider EPFR.

The surge of inflows into credit funds comes as Wall Street markets have staged a late-year rally after data released earlier in November showed the pace of consumer price growth has started to ease, prompting hopes that the Federal Reserve may soon slow down its aggressive rate rises.