US bond funds see biggest weekly outflows in four weeks


US one dollar banknotes are seen in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration

Join now for FREE unlimited access to


June 10 (Reuters) – U.S. bond funds saw massive outflows in the week to June 8 after a weekly inflow as a better-than-expected payrolls report argued for a faster pace rising interest rates.

According to data from Refinitiv Lipper, investors withdrew $7.61 billion from U.S. bond funds after buying $7.09 billion the previous week, which was the only weekly inflow since Jan. 5.

Fund flows: US stocks, bonds and money market funds

The benchmark US 10-year yield jumped more than 10 basis points in the reported week amid strong US job creation. It hit a more than 3.5-year high at 2.862% on Friday ahead of a consumer price report.

Join now for FREE unlimited access to


Investors expect the Federal Reserve to raise interest rates by 50 basis points next week as inflation data, due later today, is expected to show a sharp 0.7 rise. % in May. Read more

U.S. investors unloaded taxable bond funds worth $5.21 billion and municipal funds worth $2.4 billion, the largest weekly outflow in three weeks.

US short/mid high quality funds and short/mid government and treasury funds saw outflows of $3.63 billion and $2.77 billion, respectively, but investors bought funds at high yield worth $1.17 billion.

Fund flows: US bond funds

Meanwhile, money market funds saw net purchases of $24.79 billion, following outflows of $9.3 billion a week ago, underscoring risk sentiments.

U.S. equity funds saw net sales worth $1.82 billion after two consecutive weeks of inflows.

US growth and value funds saw outflows totaling $728 million and $869 million, respectively.

Fund Flows US Growth and Value Funds

In equities, investors disposed of technology and consumer staples funds worth $827 million and $558 million, respectively, while acquiring financials and utilities worth $558 million, respectively. $394 million and $332 million.

Fund flow: U.S. equity sector funds
Join now for FREE unlimited access to


Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.


Comments are closed.