Global bond funds see weekly outflows on inflation concerns


U.S. dollar banknotes are displayed in this illustration taken February 14, 2022. REUTERS/Dado Ruvic

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June 10 (Reuters) – Global investors resumed selling bond funds in the week to June 8, after buying them the previous week amid strong U.S. jobs numbers and a surge in the economy. European inflation rekindled fears of aggressive monetary tightening by the main central banks.

Investors withdrew $9.46 billion from global bond funds during the week, following purchases of $7.2 billion the previous week — the only weekly inflow since March 30, according to Refinitiv Lipper data.

Fund flows: global equities, bonds and money market

Investors expect the Federal Reserve to raise interest rates by 50 basis points next week, especially if consumer price data in the United States confirms high inflation on Friday.

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Friday’s inflation data is expected to show consumer prices rose 0.7% in May. Read more

US and European bond funds had net sales of $7.61 billion and $2.66 billion, respectively, but Asian funds made marginal purchases of around $90 million.

Investors sold $3.18 billion of global government bond funds after six consecutive weeks of net buying, while short- and mid-term bond funds saw outflows of $5.2 billion, the largest in four weeks.

Flows of global bond funds during the week ended June 8

Meanwhile, money market funds attracted $56.57 billion net, the biggest inflow since Oct. 27.

Global equity funds got money for a third straight week, worth $1.87 billion, but net purchases were down 82% from the previous week.

Among sector funds, utilities and energy funds attracted inflows worth $498 million and $332 million respectively, but technology and consumer staples saw outflows of $785 million. dollars and $571 million respectively.

Fund flows: global equity sector funds

Data from commodities funds showed investors withdrew $492 billion from gold and precious metals funds in a second weekly net selloff, but energy funds made small purchases, worth of $87 million.

An analysis of 24,288 emerging markets funds showed that bond funds took in $108 million net after eight straight weeks of outflows, but investors sold equity funds for $791 million.

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

Our standards: The Thomson Reuters Trust Principles.


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