(Reuters) – The first weekly outflow of global bond funds in seven months occurred in week ending Oct. 13. This was due to concerns that rising inflation would force central banks to reduce their support for the crisis earlier than they expected.

Lipper reports that global bond fund investors made a net $2.3 trillion in sales, their first week of net selling since March 10th.

Graphic: Fund flows into global equities bonds and money markets: https://fingfx.thomsonreuters.com/gfx/mkt/byprjrqorpe/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg

Two-year Treasury yields, which are usually linked to interest rate expectations, rose this week to 0.394%. This was after September data revealed that consumer prices increased. The largest increase in inflation-protected bond fund assets in the past 21/2 months was $1.83 Billion.

Graphic: Global bond funds’ flows in the week ended Oct 13: https://fingfx.thomsonreuters.com/gfx/mkt/klvykznemvg/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Oct%2013.jpg

Global equity funds made only $99.95 million in purchases last week, as compared to $6.36 billion the week before.

The fourth consecutive week of outflows by Chinese equity funds totaled $391 million. Japanese equity funds experienced $1.13 billion in net selling.

Financials saw a 75% increase in outflows over the week before, with $1.63 Billion. While tech funds received $220million, outflows to communication services and materials totaled $494 million and $255 million.

Graphic: Global fund flows into equity sectors: https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnolrbvq/Global%20fund%20flows%20into%20equity%20sectors.jpg

Inflows into global money markets funds totalled $1.25 trillion, down from $14.1 billion the week prior.

After a week of outflows, the inflows to commodity funds were $243 million for energy funds. Precious metals suffered a fourth consecutive weekly outflow, at $482 million.

Analysing 23,430 emerging markets funds found that investors bought bond funds for the fourth consecutive week at $2.84 Billion and then turned to equity funds with net sales $701 M.

Graphic: Fund flows into EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/lgpdwlomovo/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg