US bond funds record their first weekly exit in more than four months -Lipper

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November 26 (Reuters) – U.S. bond funds posted a sharp exit in the week to November 24, as investors bet the Federal Reserve would become more aggressive in normalizing monetary policy to fight inflation after that President Joe Biden appointed Jerome Powell president for a second term.

According to data from Refinitiv Lipper, investors sold US bond funds with a net worth of $ 158 million, the first outing since the week of July 14.

Cash flow to U.S. equity bonds and money market funds

The two-year US Treasury yield, which typically moves with interest rate expectations, hit 0.687% on Tuesday, its highest level since early March 2020. read more

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However, Treasury yields fell on Friday as concerns over a new variant of COVID-19 boosted demand for safe-haven assets. Read more

U.S. taxable bond funds faced net sales of $ 1.08 billion against inflows of $ 3.97 billion the week before. Municipal bond funds attracted $ 598 million in net purchases, the smallest in four weeks.

US investment grade short / mid-range funds had outflows of $ 781 million, but US general taxable fixed income funds and inflation-protected funds received $ 1.83 billion and $ 1.15 billion, respectively. of entry dollars.

Flows in US bond funds

US equity funds posted net sales for the second week in a row valued at $ 4.27 billion.

Investors sold large-cap equity funds for $ 4.4 billion, but they bought small and mid-cap equity funds for $ 2.17 billion and $ 1.84 billion respectively.

US growth and value funds posted outflows of $ 2.2 billion and $ 872 million respectively.

Funds flowing to US growth and value funds

Technology and real estate funds attracted $ 730 million and $ 539 million in inflows, respectively, while financial services and health care each recorded more than $ 0.7 billion in inflows.

Flows in US Equity Sector Funds

Meanwhile, US money market funds collected $ 14.98 billion in net purchases, the biggest influx in four weeks.

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Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan

Our standards: Thomson Reuters Trust Principles.


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