According to Refinitiv Lipper data, U.S. bond funds faced capital withdrawals for the 18th straight week, amounting to $10.42 billion, nearly twice the $5.9 billion in disposals in the previous week.
GRAPHIC – Fund flows: US equities bonds and money market funds https://fingfx.thomsonreuters.com/gfx/mkt/xmvjoyzbbpr/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
The U.S. benchmark 10-year Treasury yield hit a 3-1/2-year high of 3.203% this week on fears over higher inflation levels.
U.S. headline consumer prices rose 8.3% in April year-on-year, beating economists’ forecasts for 8.1%, data showed on Wednesday.
Investors sold U.S. taxable bond funds worth $7.72 billion, about 95% larger withdrawal from a week ago, while municipal funds suffered outflows of $2.76 billion.
U.S. short/intermediate investment-grade funds witnessed net selling of $7.28 billion in the biggest weekly outflow since April 2020. However, U.S. short/intermediate government & treasury funds lured inflows of $2.62 billion.
GRAPHIC: U.S. bond funds https://fingfx.thomsonreuters.com/gfx/mkt/znpnemylovl/Fund%20flows%20US%20bond%20funds.jpg
Meanwhile, investors offloaded U.S. equity funds worth $8.46 billion in a fifth straight weekly outflow.
GRAPHIC: U.S. growth and value funds https://fingfx.thomsonreuters.com/gfx/mkt/movanoxwbpa/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
Selling continued in U.S. growth funds for the seventh straight week, amounting to $4.5 billion. Value funds also posted an outflow, worth $1.99 billion, after a week’s inflow.
Among sector funds, financials, industrials, materials, and tech lost $1.24 billion, $756 million, $677 million, and $468 million, respectively, in outflows.
GRAPHIC: U.S. equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgkrbapb/Fund%20flows%20US%20equity%20sector%20funds.jpg
Meanwhile, U.S. money market funds booked net selling of about $7 billion in their first weekly outflow in three weeks.
Source: Economy - investing.com
