According to Refinitiv Lipper data, U.S. bond funds witnessed outflows worth a net $8.81 billion, the most in a week since June 22.
Fund flows: US equities, bonds and money market funds https://fingfx.thomsonreuters.com/gfx/mkt/zgpomgonwpd/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg
U.S. yields across the curve, from two-year notes to 30-year bonds, hit highs last seen between five and 10 weeks ago as market participants positioned for hawkish comments from Powell.
Investors jettisoned U.S. taxable bond funds worth a net$7.67 billion, the biggest amount in nine weeks, while municipal bond funds saw net outflows of $1.36 billion.
U.S. high yield funds also suffered $4.72 billion worth of net selling, the biggest outflow in over two months, while general domestic taxable fixed income, and short/intermediate government & treasury funds recorded net withdrawals of $1.7 billion and $883 million respectively.
Fund flows: US bond funds https://fingfx.thomsonreuters.com/gfx/mkt/lgvdwydonpo/Fund%20flows%20US%20bond%20funds.jpg
However, safer money market funds drew their biggest weekly net inflow since July 6 at $11.07 billion.
U.S. equity funds were also out of favour, posting a net weekly outflow of $2.19 billion after two weeks of net purchases.
Investors sold U.S. growth funds worth a net $3.31 billion in their biggest weekly disposal since July 20, while also exiting $1.75 billion in value funds.
Fund flows: US growth and value funds https://fingfx.thomsonreuters.com/gfx/mkt/byvrjygqlve/Fund%20flows%20US%20growth%20and%20value%20funds.jpg
Tech and industrials recorded net outflows of $1.77 billion and $723 million, respectively, although financials attracted $1.87 billion in net buying.
Fund flows: US equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/akvezkbozpr/Fund%20flows%20US%20equity%20sector%20funds.jpg
Source: Economy - investing.com
