Global bond funds post biggest weekly outflow in over three months

Global investors massively cut their positions in bond and equity funds in the week ended May 18 on concerns of inflation and that rising interest rates will lead to recession, reports Reuters.
According to Refinitiv Lipper, investors exited a net $18.57 billion worth of global bond funds, marking the biggest weekly outflow since February 16.
Expectations of higher interest rates to come follow comments from US Federal Reserve Chairman Jerome Powell this week that the central bank will "keep pushing" to tighten US monetary policy until it is clear that inflation is declining. read more
British inflation hit its highest annual rate since 1982 in April, while Canada reported a higher-than-expected jump. read more
US and European bond funds witnessed net selling worth $8.41 billion and $8.14 billion respectively, while Asian funds attracted small inflows of $0.06 billion.
Global short- and medium-term bond funds saw a nineteenth subsequent week of net selling, amounting $4.62 billion, and high yield funds had outflows of $5.17 billion.
Government bond funds however, remained in demand as they lured $5.45 billion in a third straight week of net buying.
Selling in global equity funds continued for a sixth straight week, although outflows at $6.26 billion were about 54 per cent lower than the previous week.
Among sector funds, financials, and consumer discretionary lost $2.07 billion and $0.84 billion respectively in outflows, but utilities and healthcare gained $1.12 billion and $0.81 billion worth of inflows.
Investors also disposed money market funds worth $7.62 billion in a third consecutive week of net selling.
Data for commodity funds showed investors offloaded $1.57 billion worth of precious metal funds in their biggest weekly net selling in 14-months, while energy funds saw outflows of $249 million.