US bond funds post larger outflows in the week to December 1 -Lipper



December 3 (Reuters) – U.S. bond funds saw increased cash outflows in the week leading up to December 1, given growing prospects that the U.S. Federal Reserve will step up the pace of unwinding its bond purchases and will raise rates from mid-2022.

According to data from Refinitiv Lipper, investors sold US bond funds for a net amount of $ 2.16 billion, compared to a net sale of $ 245 million the week before.

Cash flow to US equity bonds and money market funds

Despite concerns over the Omicron variant of the coronavirus, the two-year U.S. Treasury yield jumped 7 basis points on Wednesday after the Fed chief said that in December the Fed would discuss whether to end to its bond purchases a few months earlier than expected. Read more

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US taxable bond funds posted net sales of $ 3.03 billion, the largest weekly outflow since early April 2020. However, municipal bond funds attracted inflows of $ 1.14 billion.

US short / mid-cap investment grade funds and loan equity funds posted outflows of $ 1.84 billion and $ 304 million respectively, while weekly inflows to US inflation-protected funds increased. also fell to a four-month low at $ 169 million.

Flows in US bond funds

However, US equity funds attracted $ 7.56 billion in net purchases, their biggest influx in five weeks.

Large-cap funds have brought in $ 13.09 billion after two consecutive weeks of net sales, although investors have sold small and mid-cap equity funds valued at $ 1.96 billion respectively and $ 104 million.

U.S. growth funds have attracted $ 621 million in net purchases after four straight weeks of cash outflows. However, value funds posted net sales of $ 2.22 billion, the largest in six weeks.

Funds flock to US growth and value funds

Tech funds drew inflows for a third straight week worth $ 2.39 billion, although financials and industrials posted outflows of $ 1.51 billion and $ 481 million, respectively.

Flows in US Equity Sector Funds

Meanwhile, US money market funds got $ 29.27 billion in net purchases, the biggest inflow in five weeks.

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Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shailesh Kuber

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