U.S. bond funds post first weekly inflow in five months
(Reuters) – U.S. bond funds attracted internet inflows within the week to June 1, after 5 months of outflows, as fears eased over the Federal Reserve’s aggressive financial tightening measures and indicators emerged that inflation could have peaked.
In accordance with Refinitiv Lipper knowledge, buyers bought U.S. bond funds price a internet $7.09 billion of their first week of internet shopping for since Jan. 5.
Graphic: Fund flows: US equities, bonds and cash market funds – https://fingfx.thomsonreuters.com/gfx/mkt/myvmnwrnnpr/Fundpercent20flowspercent20USpercent20equitiespercent20bondspercent20andpercent20moneypercent20marketpercent20funds.jpg
U.S. benchmark 10-year yield hit a six-week low final week after minutes from the U.S. central financial institution’s most up-to-date coverage assembly hinted on the potential for a pause in rate of interest hikes later within the yr, which was additionally supported by weaker financial knowledge and a slower inflation progress.
Traders hope that U.S. jobs knowledge – due on Friday – would possibly sway the Federal Reserve to sluggish its aggressive tempo of rate of interest hikes within the coming months.
Traders bought U.S. taxable bond funds price $4.16 billion and municipal funds price $2.24 billion.
U.S. excessive yield bond funds obtained $5.61 billion, marking the largest weekly influx since June 2020, whereas inflation protected funds noticed outflows of $246 million, which in contrast with inflows of $1.04 billion every week earlier.
Graphic: Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/zdvxoweonpx/Fundpercent20flowspercent20USpercent20bondpercent20funds.jpg
In the meantime, U.S. fairness funds secured $7.22 billion, marking the largest weekly influx since March 23.
U.S. large-, small- and mid-cap fairness funds, all obtained inflows, amounting $3.01 billion, $0.98 billion and $363 million, respectively.
Worth funds secured inflows for second week in a row, price $1.41 billion, whereas progress funds confronted outflows of $3.95 billion.
Graphic: Fund flows: US progress and worth funds – https://fingfx.thomsonreuters.com/gfx/mkt/movanzrnjpa/Fundpercent20flowspercent20USpercent20growthpercent20andpercent20valuepercent20funds.jpg
Healthcare and, metals & mining attracted $959 million and $482 million in internet shopping for, whereas financials noticed capital outgo of $1.08 billion.
Graphic: Fund flows: US fairness sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgzegwpb/Fundpercent20flowspercent20USpercent20equitypercent20sectorpercent20funds.jpg
In the meantime, U.S. cash market funds posted outflows of $8.73 billion after purchases of $43.7 billion within the earlier week.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathyin Bengaluru; Modifying by Aditya Soni)
