According to data from Lipper, investors sold a net $2.3 billion in global bond funds, marking their first weekly net selling since March 10.
Graphic: Fund flows into global equities bonds and money markets: https://fingfx.thomsonreuters.com/gfx/mkt/byprjrqorpe/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg
The two-year Treasury yield, which typically moves in step with interest rate expectations, surged to a 1-1/2 year high of 0.394% this week, after data showed that consumer prices climbed in September. However, inflation-protected bond funds, which act as a hedge against a decline in prices of goods and services, attracted $1.83 billion, the biggest in 2-1/2 months.
Graphic: Global bond funds’ flows in the week ended Oct 13: https://fingfx.thomsonreuters.com/gfx/mkt/klvykznemvg/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Oct%2013.jpg
Meanwhile, global equity funds saw some meagre purchases, obtaining just $99.95 million, compared with inflows of $6.36 billion in the previous week.
Chinese equity funds faced a fourth consecutive weekly outflow of $391 million, while Japanese equity funds saw $1.13 billion worth of net selling.
Among sector funds, financials received $1.63 billion, a 70% increase over the previous week. Tech funds attracted $220 million, while communication services and materials saw outflows of $494 million and $285 million, respectively.
Graphic: Global fund flows into equity sectors: https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnolrbvq/Global%20fund%20flows%20into%20equity%20sectors.jpg
Global money market funds received a net $1.25 billion in inflows, compared with $14.1 billion in the previous week.
Among commodity funds, energy funds received inflows of $243 million after a outflow in the previous week, while precious metals funds faced a third consecutive weekly outflow of $482 million.
An analysis of 23,430 emerging market funds showed, investors sold bond funds for a fourth straight week, worth $2.84 billion, and turned sellers in equity funds, with net sales of $701 million.
Graphic: Fund flows into EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwlomovo/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg
Source: Economy - investing.com
