(Reuters) – U.S. bond fund investors remained net buyers for a fourth consecutive week. This is due to increased expectations that this year’s Federal Reserve would be more aggressive in its interest rate policies. Refinitiv data indicates that U.S. investors sold U.S.-issued bond funds worth $4.5 Billion, which is three times less than last week.

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Two-year U.S. Treasury yields, which are usually moved in tandem with interest rate expectations and surged to 1.3% Friday. This is its highest point since February 2020. The largest outflows of U.S. municipal bonds funds since April 2020 was $1.79 billion. U.S. investment-grade short/intermediate funds were also sold by investors, while domestic fixed income funds valued at $2.53 Billion were purchased. The largest outflow in 22-months was $1.7 billion from U.S. inflation protection funds.

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During the week, outflows of $7.92 trillion were also experienced by U.S. equity fund portfolios.

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Net selling by sector funds was $1.32 trillion, $1.12 trillion and $231 millions respectively. Meanwhile, net buying in consumer staples reached $707million.

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After receiving $25.47 trillion in inflows the week before, U.S. money markets funds saw outflows totaling $17.73 Billion.