Inflows into U.S. bond funds dip on inflation jitters, Lipper finds
Reuters
Published Jul 16, 2021 09:33AM ET
(Reuters) - Money inflows into U.S. bond funds fell in the week to July 14 after data showing higher inflation reinforced expectations the Fed may raise its interest rates soon.
Data from Refinitiv Lipper showed U.S. bonds received a net inflow of $4.8 billion in the week, a 45% drop compared with the previous week.
This week's data from U.S. Labor Department showed the consumer price index rose by the most in 13 years in June.
U.S. high-yield bonds witnessed outflows worth $1.6 billion, the most in four weeks.
Graphic: Fund flows into U.S. equities bonds and money market: https://fingfx.thomsonreuters.com/gfx/mkt/qmyvmdzrgpr/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg
U.S taxable bond funds and municipal bond funds saw a big dip in inflows, the data showed.
Meanwhile, investors turned net buyers of U.S. equities in the week. U.S. growth funds received $1.6 billion, the largest inflow in four weeks.
By contrast, U.S. value funds witnessed net selling for a fourth straight week.
Among specialist funds, investors purchased health care sector funds worth $1.2 billion, the biggest weekly inflow this year.
Graphic: Fund flows into U.S. growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/dgkvlrnedvb/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg
Graphic: Flows into U.S. equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/nmovaxerqpa/Flows%20into%20U.S.%20equity%20sector%20funds.jpg
Investors sold $31.2 billion worth of U.S. money market funds, marking their largest outflow in seven months.
Graphic: Flows into U.S. bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/jznpnywgjvl/Flows%20into%20U.S.%20bond%20funds.jpg
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.