Global bond funds receive inflows for eighth straight week
(Reuters) – Global bond funds attracted massive inflows in the week ended Sept. 15 as inflation worries subsided after U.S. data showed a slower increase in consumer prices in August.
In the last week, investors bought a net of $12.26 billion in international bond funds. This was their eighth consecutive week as net purchasers.
Fund flows into global equities bonds and money markets https://fingfx.thomsonreuters.com/gfx/mkt/zjpqkjwddpx/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg
The core measure of U.S. consumer prices edged up 0.1% last month, the smallest gain since February. This August slowdown provides the Federal Reserve with some breathing room while it reduces its vast bond holdings and determines how quickly to increase rates.
European bond funds managed to attract $6.46 billion. U.S. bonds secured $5.56 billion. Asian bond funds suffered a minor outflow.
Global bond funds’ flows in the week ended Sep 15 https://fingfx.thomsonreuters.com/gfx/mkt/zdpxodnjzvx/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Sep%2015
Global bond funds’ flows in the week ended Sep 15 https://fingfx.thomsonreuters.com/gfx/mkt/zdpxodnjzvx/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Sep%2015.jpg
Global equity funds pulled in a net $9.1 billion, compared with $8.6 billion in the previous week, with the United States, Europe and Asia attracting a net $5.54 billion, $2.13 billion and $1.26 billion, respectively, in inflows.
Global fund flows into equity sectors https://fingfx.thomsonreuters.com/gfx/mkt/xmpjokrqyvr/Global%20fund%20flows%20into%20equity%20sectors.jpg
Within sector funds, tech funds attracted $751 million, a 148% increase over the previous week, while financials, real estate and industrials saw outflows of $640 million, $266 million and $217 million, respectively.
Global money market funds saw outflows totaling $67.3 billion. This is the highest in nine months.
The net purchase of precious metals funds was $217 million, against an $109 million outflow the week before. Meanwhile, energy funds faced outflows every week for five weeks.
Analysis of 238,84 emerging market funds revealed that equity funds attracted $867 millions and bond funds received $571 million. Each mark a third week-end inflow.
Fund flows into EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/gkplgwdqevb/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg
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