According to Refinitiv Lipper data, investors purchased U.S. bond funds worth a net $7.09 billion in their first week of net buying since Jan. 5.
Graphic: Fund flows: US equities, bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/myvmnwrnnpr/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
U.S. benchmark 10-year yield hit a six-week low last week after minutes from the U.S. central bank’s most recent policy meeting hinted at the potential for a pause in interest rate hikes later in the year, which was also supported by weaker economic data and a slower inflation growth.
Investors hope that U.S. jobs data – due on Friday – might sway the Federal Reserve to slow its aggressive pace of interest rate hikes in the coming months.
Investors purchased U.S. taxable bond funds worth $4.16 billion and municipal funds worth $2.24 billion.
U.S. high yield bond funds obtained $5.61 billion, marking the biggest weekly inflow since June 2020, while inflation protected funds saw outflows of $246 million, which compared with inflows of $1.04 billion a week earlier.
Graphic: Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/zdvxoweonpx/Fund%20flows%20US%20bond%20funds.jpg
Meanwhile, U.S. equity funds secured $7.22 billion, marking the biggest weekly inflow since March 23.
U.S. large-, small- and mid-cap equity funds, all obtained inflows, amounting $3.01 billion, $0.98 billion and $363 million, respectively.
Value funds secured inflows for second week in a row, worth $1.41 billion, while growth funds faced outflows of $3.95 billion.
Graphic: Fund flows: US growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/movanzrnjpa/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
Healthcare and, metals & mining attracted $959 million and $482 million in net buying, while financials saw capital outgo of $1.08 billion.
Graphic: Fund flows: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgzegwpb/Fund%20flows%20US%20equity%20sector%20funds.jpg
Meanwhile, U.S. money market funds posted outflows of $8.73 billion after purchases of $43.7 billion in the previous week.
Source: Economy - investing.com
