(Reuters) – Global investors cut massively their position in equity and bond funds over the week ending May 18, on fears of rising inflation and a possible recession.

Refinitiv Lipper reported that global bond fund investors sold $18.57 billion in net funds. It was the highest weekly outflow since February 16, 2016.

(Graphic-Fund flows: Global equities bonds and money market: https://fingfx.thomsonreuters.com/gfx/mkt/jnvwezwdxvw/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg)

This week’s comments by Jerome Powell (US Federal Reserve Chairman) that the central bank “keep pushing” U.S. monetary policy to increase interest rates are a sign of rising inflation.

Inflation in Britain reached its highest level since 1982, with an April increase of 5%. Canada saw a greater than expected jump.

U.S. bonds were sold for $8.41 trillion and European bonds at $8.14 trillion, respectively. Asian bond funds saw small inflows of 0.06 billion.

A global week-end of net selling of short- and long-term bonds funds totaled $4.62 trillion, with outflows from high-yield funds of $5.17billion.

However, government bond funds remained popular as $5.45 Billion was bought in net for the third consecutive week.

(Graphic- Global bond fund flows in the week ended May 18: https://fingfx.thomsonreuters.com/gfx/mkt/byvrjdrwxve/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20May%2018.jpg)

The selling of global equity funds continues for six straight weeks, but outflows were $6.26billion about 54% below the prior week.

Financials and consumer discretionary suffered losses of $2.07 billion, $0.84 billion, respectively, while utilities and healthcare saw inflows of $1.12 billion, $0.81 billion, respectively.

(Graphic: Fund flows: Global equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/zgpomerxnpd/Fund%20flows-%20Global%20equity%20sector%20funds.jpg)

In a third week consecutive, investors also sold money market funds in excess of $7.62 trillion.

The data for commodity funds revealed that investors outloaded $1.57 Billion worth of precious metal funds as part of their biggest weekly net sales in 14-months. However, $249 M was outflow from energy funds.

Analysis of 24262 emerging market fund funds indicated that investors had sold equity funds totalling $1.38billion and bonds funds totalling $4.36billion. This was the sixth weekly outflow.

(Graphic: Fund flows: EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/akvezrawepr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg)