Global bond funds see big influx on investor caution-Lipper


A man points to a computer screen displaying stock information in this illustrative photo taken in Bordeaux, France on March 30, 2016. REUTERS / Regis Duvignau / File Photo

August 27 (Reuters) – Global bond markets experienced their fifth straight week of surge through August 25, as investors turned cautious ahead of the U.S. Federal Reserve’s Jackson Hole meeting, waiting for President Jerome Powell could say Friday about the stimulus packages.

According to Lipper’s data, investors bought $ 10.97 billion in global bonds in the week to Wednesday, although it was slightly less than the week before.

Cash flow to global equity bonds and money markets

The July Fed meeting minutes released last week showed that most policymakers expect the Fed to start cutting its bond purchases this year, although consumer confidence and the data economies have weakened since that meeting. Read more

Safer government bond funds received $ 2.3 billion, up 22.5% from the previous week.

US short- and mid-level investment funds recorded inflows of $ 1.63 billion, their fourth consecutive week of inflows, while taxable fixed income funds in the US received $ 2.47 billion .

In contrast, US high yield bond funds experienced capital outflows.

Global funds flock to equity sectors

Global equity funds also posted outflows worth $ 6.6 billion, after registering net purchases in the previous four weeks, driven by higher sales of US equities.

Among equity sector funds, technology funds received a net amount of $ 1.43 billion, while the materials sector recorded outflows worth $ 500 million.

Among commodities funds, precious metals funds posted net sales of $ 1.33 billion, 86% more than the week before. Energy funds recorded outflows worth $ 104 million.

Global Bond Fund Flows for the Week Ended August 25

Global money market funds posted outflows of $ 1.56 million during the week.

An analysis of 23,786 emerging market funds showed that investors unloaded $ 673 million net of equity funds, which was their biggest net sale since the end of June, and sold $ 217 million of bond funds.

Cash flow to emerging market equities and bonds

Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill

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