Reuters
Published Feb 17, 2023 07:23AM ET
(Reuters) - U.S. bond funds witnessed their first weekly net selling in six weeks in the seven days to Feb. 15 as bond yields climbed on concerns over more Federal Reserve tightening after data showed resilient inflation.
A report from the Labor Department on Thursday showed monthly producer prices accelerated in January, while the producer price index for final demand rebounded 0.7% last month after decreasing 0.2% in December.
On Tuesday, consumer price index data showed inflation accelerated in January and was more than expected on an annualized basis. Refinitiv Lipper data showed investors withdrew a net $958 million out of U.S. bond funds, marking the first weekly net selling since Jan. 4. U.S. taxable bond funds suffered $855 million worth of outflows compared with $1.89 billion worth of net buying in the previous week. Investors also sold $311 million worth of municipal bond funds.
GRAPHIC: Fund flows: US equities, bonds and money market funds (https://fingfx.thomsonreuters.com/gfx/mkt/zgpobkqwnvd/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg)
U.S. high yield, general domestic taxable fixed income, and emerging markets debt funds witnessed outflows worth $3.04 billion, $1.2 billion, and $1.1 billion, respectively; short/intermediate investment-grade funds received $2.87 billion in inflows.
GRAPHIC: Fund flows: US bond funds(https://fingfx.thomsonreuters.com/gfx/mkt/akveqmdgevr/Fund%20flows%20US%20bond%20funds.jpg)
Meanwhile, U.S. equity funds booked $3.56 billion worth of net selling, the biggest weekly outflow in six weeks. U.S. large and mid-cap equity funds faced $4.01 billion and $915 million worth of withdrawals, but small-cap funds remained in demand for a third-straight week, with a net $725 million in inflows.
Meanwhile, investors secured $6.9 billion worth of money market funds in their first weekly net buying in three weeks.
GRAPHIC: Fund flows: US equity sector funds (https://fingfx.thomsonreuters.com/gfx/mkt/byvrlkzoxve/Fund%20flows%20US%20equity%20sector%20funds.jpg)
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.