Global bond funds record first weekly inflow in two months

A woman holds US dollar banknotes in front of euro banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration

June 3 (Reuters) – Global bond funds secured capital inflows in the week to June 1 after eight weeks of outflows, boosted by strong demand amid fears of aggressive monetary tightening and excessive pressure on prices have calmed down.

Investors bought $6.16 billion net in global bond funds in their first weekly net purchase since March 30, marking the biggest weekly inflow since January 5, according to Refinitiv Lipper data.

Last week, minutes from the US central bank’s latest monetary policy meeting hinted at the possibility of a pause in key rate hikes later in the year. Read more

Investors are hoping U.S. jobs data due Friday could prompt the Federal Reserve to slow its current aggressive pace of raising interest rates over the next few months.

Investors acquired US bond funds for $7.09 billion, while European and Asian funds received inflows of $1.15 billion and $0.08 billion, respectively.

Global high-yield bond funds attracted $7.62 billion, the highest amount since at least July 2020, while government bond funds attracted $4.54 billion.

However, investors disposed of $3.89 billion worth of short- and mid-term global bond funds, seeing outflows for the following 21st week.

Meanwhile, global equity funds made purchases worth $9.38 billion, the largest since Feb. 9, amid strong demand for ETFs, which drove inflows. of $14.42 billion.

Among sector funds, healthcare, metals & mining and technology funds saw inflows of $1.19 billion, $445 million and $86 million, respectively, but financials lost 1.03 billion dollars in output.

Money market funds, meanwhile, saw a net sale of $40.99 billion, the largest since April 13.

Data from commodities funds showed investors exited gold and precious metals funds worth $521 billion after buying $1.33 billion the previous week. Energy funds also saw weak outflows.

An analysis of 24,309 emerging markets funds showed investors bought $167 million worth of equity funds after seven weeks of net selling, but sold $194 million worth of bond funds.

Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Amy Caren Daniel

Our standards: The Thomson Reuters Trust Principles.