US bond funds receive inflows for second consecutive week
Saturday, 15 July 2023
US bond funds attracted money inflows for a second consecutive week in the seven days ended July 12, on diminishing investor fears over higher inflation and expectations that the Federal Reserve will be less aggressive in hiking interest rates, reports Reuters.
According to Refinitiv Lipper, investors acquired $2.9 billion worth of US bond funds, with US government bond funds receiving a bulk of it.
On the other hand, high-yield and loan participation funds saw outflows worth $495 million and $217 million respectively.
Meanwhile, US equity funds received a net $120 million in inflows during the week, compared with purchases of $4.4 billion a week ago.
Among sector funds, consumer staples drew a net $293 million while tech received $1.5 billion, the biggest inflow in four weeks. Meanwhile, healthcare lost $691 million in outflows, the most in three weeks.
Investors also withdrew $26.55 billion from U.S. money-market funds during the week, after having secured $31.9 billion worth of funds, in the week before.