GRAPHIC-Weekly inflows to global bond funds hit two-month peak – Lipper

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November 5 (Reuters) – Global bond funds attracted massive inflows in the week to November 3, as investors reassessed expectations for the future course of key rate hikes ahead of major central bank meetings.

Investors bought $ 13.79 billion net of global bond funds, marking their biggest net buy since the week of September 1, according to Lipper data.

The US central bank on Wednesday announced the reduction of its monthly purchases of $ 120 billion of debt securities to $ 15 billion per month and reaffirmed that the current high inflation should “be transitory”. Meanwhile, Fed Chairman Jerome Powell has indicated that more job growth is needed before the central bank raises interest rates.

The 2-year US Treasury yield has fallen more than 10 basis points since reaching a 19-month high last week.

“In a standoff between central banks and market prices, the latter seems to be called into question,” Mizuho Bank said in a note.

US bond funds attracted a net amount of $ 8.1 billion, European funds attracted $ 5.23 billion, while Asian funds received $ 0.36 billion.

Global short- and medium-term bond funds obtained $ 1.72 billion in net purchases after facing cash outflows the week before. Inflation-protected funds attracted a net amount of $ 1.98 billion and government bond funds attracted $ 2.35 billion.

Global equity funds raised $ 9.03 billion, marking a fifth straight week of inflow.

Chinese equity funds attracted $ 1.05 billion in purchases, their biggest weekly inflow in five months, while Japanese funds faced outflows of $ 1.32 billion after two straight weeks of ‘influx.

Among sector funds, tech and health funds attracted inflows of over $ 1 billion each, while consumer discretionary and industrials both recorded outflows of around $ 0.25 billion. .

Meanwhile, global money market funds attracted $ 28.53 billion in net purchases, marking a third weekly inflow.

Among commodities funds, precious metals funds faced a sixth weekly outflow of $ 606 million, while energy funds registered marginal inflows of $ 23 million.

An analysis of 23,878 emerging market funds showed investors bought $ 1.79 billion in equity funds and $ 413 million in bond funds, after six consecutive weeks of net selling.

Report by Gaurav Dogra in Bangalore; Editing by Chizu Nomiyama


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