Investors pulled out a net $7.46 billion from global equity funds during the week, extending outflows into a sixth straight week, data from LSEG showed.
The yield on U.S. 10-year Treasury bonds reached a 16-year high earlier this week, breaching the 5% mark, driven by expectations of robust U.S. growth and a growing fiscal deficit.
European equity funds logged about $7.39 billion worth of outflows during the week, the biggest amount since Sept. 28, 2022. Investors also divested $2.69 billion worth of U.S. equity funds but poured $2.53 billion in Asian funds.
Among sectors, health care, financials, and consumer discretionary sector funds faced outflows of $696 million, $649 million, and $405 million, respectively. In contrast, the tech and energy sectors received around $500 million each in inflows.
Meanwhile, safe-haven government bond funds received $5.02 billion, the biggest weekly inflow in seven months. Investors also accumulated $18.3 billion worth of money market funds after $108.7 billion worth of net selling a week ago.
Global bond funds registered a combined outflow of about $604 million on a net basis, the first weekly net selling in three weeks.
Investors withdrew a net $1.73 billion from high-yield bond funds, staying net sellers for a seventh successive week. Corporate bond funds, meanwhile, received $520 million, the second weekly inflow in a row.
Commodities data revealed that investors poured about $411 million into precious metal funds, snapping a 21-week-long selling streak. Energy funds also received inflows, roughly about $435 million.
Data covering 28,654 emerging market funds showed that investors exited EM equity funds of $2.55 billion, extending outflows into an 11th straight week. EM bond funds also remained out of favour for a 13th successive week with $875 million in net disposals.
Source: Economy - investing.com
