Global bond funds record outflows for tenth straight week


A view over the London skyline shows the City of London’s financial district as seen from St Paul’s Cathedral in London, Britain February 25, 2017. REUTERS/Neil Hall

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March 18 (Reuters) – Global bond funds recorded outflows of money for the tenth consecutive week in the week to March 16, as rising inflation levels in the United States raised expectations that the Reserve federal government should act more aggressively to stem the price spike.

Investors dumped global bond funds worth $17.01 billion, after selling $15.75 billion the previous week, according to data from Refinitiv Lipper.

Fund flows: stocks, bonds and global money markets

The Fed on Wednesday announced a quarter-percentage-point hike to reach U.S. interest rates near zero and signaled it would hike rates more aggressively than expected to rein in inflation, after a firm reading of inflation last week. Read more

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The announcement by the European Central Bank of the end of asset purchases in the third quarter also weighed on sentiment.

European bond funds recorded outflows worth $9.11 billion, while US and Asian bond funds recorded net sales of $7.24 billion and $0.4 billion, respectively.

Global high-yield funds lost $4.88 billion in the biggest net selloff in four weeks, while short- and mid-term funds and government funds faced withdrawals of $3.95 billion. dollars and $0.88 billion respectively.

However, inflation-linked funds received $1.15 billion in a third consecutive week of inflows.

Flows of global bond funds during the week ended March 16

Investors were also net sellers of global equity funds for a third consecutive week, as they withdrew $11.8 billion.

Global funds in the consumer discretionary, technology and industrials sectors recorded outflows of $1.28 billion, $0.88 billion and $0.79 billion, respectively, while funds healthcare and mining attracted inflows of $1.2 billion and $1.1 billion respectively.

Fund flows: global equity sector funds

Global money market funds posted net sales of $44.68 billion after three straight weeks of inflows.

Among commodities funds, precious metals funds attracted $1.39 billion in a ninth straight week of net buying, while energy funds attracted $129 million in inflows.

An analysis of 24,062 emerging market funds showed that equity funds lost $5.4 billion in the largest weekly outflows since at least April 2020, while bond funds faced outflows of $1. .38 billion dollars.

Fund flows: emerging market stocks and bonds
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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; edited by Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.


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