(Reuters) – Global bond funds experienced large outflows during the week ending May 4, as soaring inflationary tension fueled caution before the Federal Reserve’s policy announcement this week.

Refinitiv Lipper reported that global bond fund investors sold out of $11.99 trillion in their fifth week-end net sale.

Inflationary concerns aside, last week’s data showed that there was strong U.S. consumer demand in March, and an increase in labor costs during the first quarter. This raised concern about whether the Fed will tighten its policy further than originally planned.

Jerome Powell was the Fed Chair and ruled out raising rates to 75 basis points at a forthcoming meeting. He did however make it clear that the Fed has already decided on rate increases of 50 basis points.

U.S. bond funds experienced outflows in the amounts of $6.24 billion and $5.58 trillion, respectively. Asian bonds saw marginal selling at a net 0.03 billion.

The weekly net selling of global short-term and medium-term bonds increased to $6.9billion, surpassing a peak four months ago. However, government bonds funds saw their largest weekly inflow ever since June 2020.

The weekly outflows of global equity funds decreased to $1.79 billion, a 4-week low.

Sector-wise, tech and financials saw net sales in the range of $634 million to $483 million. But, consumer staples and utilities received inflows in excess of $497 and $457 millions, respectively.

After attracting $51.72billion in purchases the previous week, money market funds experienced outflows totaling $10.79billion.

Commodities fund data revealed that precious metal funds experienced outflows in excess of $402 million, while energy funds saw net sales of $97 millions for the seventh week straight.

Analyse of 24,183 emerging markets funds shows net selling in equity and bonds funds dropped to $328 million and $565 million, respectively, after a three-week low.