Global bond funds receive biggest weekly inflow in nine months

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The DAX chart of the German stock price index is pictured on the stock exchange in Frankfurt, Germany, August 4, 2022. REUTERS/Staff

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Aug 5 (Reuters) – Global bond funds got their biggest weekly inflow in nine months and purchases of money market funds also rose in the week to Aug 3 as investors favored safety amid concerns caused by the risk of a global recession.

Additionally, nervousness over an escalation in US-China tensions following US House Speaker Nancy Pelosi’s visit to Taiwan dampened investors’ appetite for risky assets.

According to Refinitiv Lipper, global bond funds saw net purchases of $14.4 billion, the biggest weekly inflow since Nov. 3.

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Meanwhile, money market funds also attracted $7.03 billion, a 66% increase in inflows from the previous week.

Fund flows: global equities, bonds and money market

Data released during the reported week showed growth in U.S. factory activity weakened to a two-year low in July. Figures from Europe and Asia also pointed to a slowdown or contraction in production activities amid falling demand, raising further concerns about global growth. Read more

Global government bond funds attracted $3.77 billion after an outflow the previous week, while short- and mid-term bond funds received their first weekly inflow since Jan. 5, net $1. $59 billion.

Flows of global bond funds during the week ended August 3

However, global equity funds suffered outflows of $10.42 billion in a sixth consecutive week of net sales.

US and European equity funds saw withdrawals of $6.84 billion and $4.81 billion, respectively, but investors poured $0.86 billion into Asian funds.

Fund flows: global equity sector funds

Data from commodities funds showed that gold and precious metals funds recorded a sixth weekly outflow, valued at $382 million, while energy funds saw a marginal outflow of $48 million. .

An analysis of 24,414 emerging market funds showed that bond funds gained $954 million in inflows after seven consecutive weekly exits, but equity funds lost $534 billion in a third weekly exit .

Fund flows: emerging market stocks and bonds
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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.

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