Global equity fund sees first weekly outflow in nine weeks as bond yields rise

Global equity funds recorded the first weekly outflow in nine weeks in the week through May 20, as investors turned cautious over inflation and a rise in long-term borrowing costs to nearly two-decade highs, reports Reuters.
According to LSEG Lipper data, investors liquidated a net $6.13 billion of global equity funds during the week, logging their first weekly net sales since mid-March, when they had withdrawn a net $21.87 billion.
The 30-year US Treasury yield climbed to 5.201% on Wednesday, its highest since 2007, as uncertainty around a possible ?resolution to the Middle East conflict raised concerns over energy prices and inflation. It last traded at 5.0795%.
US equity funds suffered the second weekly outflow in three weeks, to the tune of $12.05 billion. Asian funds also recorded net outflows of $570 million, though European funds attracted a net $4.62 billion in inflows.
Technology sector funds were popular for a seventh successive week, with net inflows of $6.94 billion. Financials and industrials, however, had weekly outflows of $2.8 billion and $1.3 billion, respectively.
Investors, meanwhile, bought a net $21.89 billion of ?global bond funds as they extended the recent buying streak into a seventh successive week.
Short-term bond funds, government bond funds and euro-denominated bond funds witnessed significant weekly net purchases of $7.47 billion, $3.09 billion and $1.68 billion, respectively.
Money market funds recorded a lighter $1.06 billion weekly ?net inflow, after a net outflow of $10.41 billion the prior week.
Gold and precious metals commodity funds saw a net $2.34 billion of weekly inflows, remaining popular for a second straight week.
In emerging markets, investors shed a net $2.95 billion of equity funds, resulting in a fourth straight week of outflows. They also withdrew $256 million from bond funds after a run ?of six weekly purchases, combined data for 28,926 funds showed.