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U.S. bond funds see first weekly outflow in over four months -Lipper -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: An trader operates on the New York Stock Exchange (NYSE), in Manhattan, New York City. August 9, 2021. REUTERS/Andrew Kelly/File Photograph

(Reuters) – U.S. Bond funds experienced a net inflow over the week ending Nov. 24, when investors placed bets on the Federal Reserve becoming more aggressive in normalizing monetary and monetary policy in order to reduce inflation. President Joe Biden had nominated Jerome Powell for a second term as its chairperson. Refinitiv Lipper data indicates that the net outflow from investors selling U.S. Bond funds was $158 Million, which is the first inflow since July 14.

Fund flows into U.S. equities bonds and money market funds: https://fingfx.thomsonreuters.com/gfx/mkt/znpnekwlmvl/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market%20funds.jpg

Two-year U.S. Treasury yield rose to 0.687% Tuesday. This is its highest level since February 2020.

On Friday, however, Treasury yields fell as fears about the new COVID-19 variant fueled demand for safe-haven assets.

U.S. tax-exempt bond funds saw net sales of $1.08 Billion, compared to inflows at $3.97 Billion the week before. Net buying by municipal bond funds reached $598m, the lowest level in four weeks.

U.S. investment-grade short/intermediate funds experienced outflows $781 million, but U.S. general income fixed income funds and inflation protection funds received $1.83 and $1.15 respectively in inflows

Flows into U.S. bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/zgpomkoaxpd/Flows%20into%20U.S.%20bond%20funds.jpg

For the second consecutive week, net sales in U.S. equity fund were $4.27 Billion.

Large-cap equity investments of $4.4billion were sold by investors. However, small- and medium-cap equity portfolios of $1.84billion and $2.17billion respectively were purchased.

Outflows from U.S. value and growth funds totaled $2.2 billion, and $872million respectively.

Fund flows into U.S. growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/jnvwexmjovw/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg

Real estate and technology funds received inflows totalling $730m and $539m, respectively. However, financials and medical care saw outflows in excess of $0.7billion.

Flows into U.S. equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/gdvzydxkepw/Flows%20into%20U.S.%20equity%20sector%20funds.jpg

The U.S. money markets funds meanwhile drew in $14.98 trillion in net purchases, which is the largest inflow of four weeks.

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