(Reuters) – Global equity fund outflows increased in the week ending Sept. 29, fueled by expectations that central banks will soon raise interest rates, despite concerns about inflation.

Lipper’s data showed that global equity fund investors made a net sale of $1.21 billion this week. This compares to the $174 million sold the previous week.

Fund flows into global equities bonds and money markets: https://fingfx.thomsonreuters.com/gfx/mkt/byprjlwkkpe/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg

Federal Reserve officials indicated last week they were ready to raise interest rates in 2022. They also said that it is possible that the bank would reduce its monthly bond purchases by next month. Inflation was expected to be 4.2% in 2018, more than double the target rate of 2%.

U.S. equity fund net sales were $6.24 Billion, but net purchases from Asian and European equities reached $3.25 and $0.15 Billion respectively.

Global fund flows into equity sectors: https://fingfx.thomsonreuters.com/gfx/mkt/lbpgngeblvq/Global%20fund%20flows%20into%20equity%20sectors.jpg

The net inflows to global bond funds for the 10th consecutive week were 22% lower than the previous week.

A net $2.64 Billion was attracted by global medium and short term bond funds, which were the highest in 4 weeks. Meanwhile, inflation-protected fund drew about $1 billion. This is a record three-week high. But, there was a small outflow of $26 M from government bond funds.

Global bond funds’ flows in the week ended Sep 29: https://fingfx.thomsonreuters.com/gfx/mkt/egvbkyxalpq/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Sep%2029.jpg

The net net purchase of global money market funds by investors was $22.1 billion, as opposed to $30.3 million in net purchases during the prior week.

Energy funds experienced their first net inflow of $25 million in seven weeks, while precious metals saw outflows totalling $931 million.

Analysis of 23682 emerging market fund funds revealed that investors had sold net net of $2.84 billion in bonds funds and $2.46 trillion in equity funds. This was the second week in which each segment saw net sales.

Fund flows into EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwkznjvo/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg