Global bond funds see large outflows in week to April 13

0

Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this illustration, January 21, 2016. REUTERS/Jason Lee

Join now for FREE unlimited access to Reuters.com

Register

April 18 (Reuters) – Global bond funds saw massive outflows of money in the week to April 13 as investors feared the Federal Reserve could begin to tighten policy more aggressively to contain rising pressures on prices, which could slow economic growth.

According to Refinitiv Lipper, global investors lost $14.5 billion worth of bond funds in the week under review, compared to $1.15 billion in net disposals the previous week.

Fund flows: global equities, bonds and money market

The benchmark 10-year US Treasury yield hit a three-year high last week following hawkish comments from Fed officials. Read more

Join now for FREE unlimited access to Reuters.com

Register

Meanwhile, data released last week showed US consumer prices rose the most in 16½ years in March, but underlying pressures eased as prices for goods, excluding food and energy, fell the most in two years. Read more

Among regions, US bond funds saw massive outflows of $12.57 billion. Investors also sold European and Asian funds for $2.99 ​​billion and $0.42 billion, respectively.

Investors unloaded $6.55 billion from global short- and mid-term bond funds and exited $6.21 billion worth of high-yield bond funds, marking the biggest outflow in two months.

Meanwhile, inflation-protected funds gained $659 million in a seventh straight week of net buying.

Flows of global bond funds during the week ended April 13

Global equity funds posted a net sale of $11.04 billion in their first weekly outflow in four weeks.

Among sector funds, financials lost $1.64 billion in a second straight week of outflows, while consumer staples and utilities received inflows of around $0.6 billion. dollars each.

Fund flows: global equity sector funds

During the week, investors withdrew $40.3 billion from money market funds after two straight weeks of net buying.

In the materials sector, precious metals funds gained $1.43 billion in a 13th straight week of inflows. Energy funds, on the contrary, had to deal with outflows worth $120 million.

An analysis of 24,116 emerging markets funds showed that investors became net sellers of equity and bond funds, offloading $340 million and $381 million, respectively.

Fund flows: emerging market stocks and bonds
Join now for FREE unlimited access to Reuters.com

Register

Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Subhranshu Sahu

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.