(Reuters) – U.S. bond fund investors remained net buyers in the week ending May 4, as rising inflationary risks in the US fueled caution ahead Federal Reserve policy meeting.

Refinitiv Lipper data shows that U.S. bond fund investors sold $5.52 trillion worth of bonds funds during the 17th consecutive week of net sales.

Graphic: Fund flows: US equities, bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwgeggvo/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg

After reports that U.S. consumers spent more in March than usual and soaring labour costs during the first quarter, this week’s U.S. benchmark reached a three-1/2 year high of 3.3%.

Fed Chair Jerome Powell has ruled out raising rates 75 basis points during a meeting after a 50-basis point increase in the benchmark overnight rate at the central bank on Wednesday. He did however make it clear that the Fed’s rate hikes are not going to be “pleasing”.

The investors sold U.S. tax bond funds valued at $3.82 Billion and U.S. municipal funds worth $1.75 Billion.

In the 17th consecutive week of outflows, U.S. intermediate/short investment-grade funds saw net sales of $5.46 Billion. The largest inflows over the past three weeks were $0.83 billion from loan participation funds.

Graphic: Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/byvrjnaomve/Fund%20flows%20US%20bond%20funds.jpg

The weekly U.S. equity funds outflows dipped to $3.76 Billion, a 4-week low.

U.S. Value funds reported their first weekly outflow for seven weeks worth $854m, and growth funds recorded net selling of $3.93billion, though that was still the lowest outflow over four weeks.

Graphic: Fund flows: US growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/akpezyrdovr/Fund%20flows%20US%20growth%20and%20value%20funds.jpg

Technology and financials suffered net losses of $724 million (and $593 million) respectively. Utilities saw net buying of $542million. Graphic: Fund flows: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/zgvomleqkvd/Fund%20flows%20US%20equity%20sector%20funds.jpg

U.S. money market net purchases reached $2.63 trillion, with a 94% decrease in inflows over the week before.