WASHINGTON, Dec 15 (Reuters): Investors pulled back sharply from global bond funds in the seven days through Dec. 13, amid caution ahead of the US Federal Reserve's monetary policy decision and uncertainty over the timing of rate cuts.
Investors withdrew a net $6.91 billion, logging the biggest weekly net selling in global bond funds since Nov. 1.
They sold $4.41 billion worth of US bond funds, extending outflows into a third week. European funds also had $2.99 billion worth of outflows, but Asian funds still attracted $177 million in inflows.
A significant uptick in US Treasury yields last week followed the Labor Department's report of strong job growth in November, altering expectations about future rate reductions.
However, this week the 10-year Treasury yield has dropped about 27 basis points in the last two trading sessions after the Fed held rates unchanged and hinted at ending its tight monetary policy.
Global equity funds, meanwhile, secured $1.18 billion worth of inflows, a rebound from the $2.15 billion outflow observed the previous week.
Investors retreat from global bond funds on caution
FE Team | Published: December 16, 2023 00:26:33
Investors retreat from global bond funds on caution
Share if you like