US bond funds see weekly inflows after four weeks

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U.S. one hundred dollar notes are seen in this illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won

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July 8 (Reuters) – Investors were net buyers of U.S. bond funds in the week ending July 6 as growing concerns about economic growth boosted demand for safe-haven U.S. debt.

According to data from Refinitiv Lipper, U.S. bond funds attracted $2.72 billion in net purchases, marking their first weekly inflow since June 1.

The benchmark U.S. 10-year yield fell to a six-week low of 2.746 earlier this week as investors lowered their expectations of U.S. key rate hikes as worries about an economic slowdown grew. Read more

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Five-year Treasury Inflation-Protected Securities (TIPS) break-even rates, a measure of expected annual inflation for the next five years, hit a six-month low earlier in the week.

Investors bought $5.68 billion in US government and Treasury fixed income funds, marking the biggest weekly inflow since at least October 2018. They also bought $1.59 billion in high-yield bond funds. of dollars.

U.S. equity funds saw a second weekly net selloff, worth $4.89 billion, a 32% bigger outflow than a week ago.

Investors sold off US growth funds as well as value funds for a second straight week, resulting in outflows of $2.53 billion and $2.19 billion, respectively.

Among sector funds, healthcare funds attracted $1.09 billion in inflows, but financials, metals & mining and industrials suffered net sales of $1.08 billion, 708 million and $630 million.

Meanwhile, money market funds attracted 23.76 billion in net purchases after three straight weeks of outflows.

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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Andrew Heavens

Our standards: The Thomson Reuters Trust Principles.

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