(Reuters) – U.S. Bond funds experienced a significant increase in outflows over the week of Dec. 1, due to increasing expectations that the U.S. Federal Reserve might accelerate its pace in unwinding bond purchases and lift rates in mid-2022. Refinitiv Lipper data shows that investors have sold U.S. bonds funds for a net total of $2.16 billion compared to their net sale of $245 millions in the week prior.

Fund flows into U.S. equities bonds and money market funds: https://fingfx.thomsonreuters.com/gfx/mkt/xmpjonkxavr/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market%20funds.jpg

The two-year U.S. Treasury Yield rose 7 basis points Wednesday despite concerns about the Omicron coronavirus variation. This was after Fed Chief John Powell said in December that the Fed would discuss whether it will end its bond purchases a few more months before expected.

U.S. Taxable bond funds saw net sales of $3.03 trillion, which was the biggest weekly outflow in a week since mid-April 2020. But, inflows to municipal bond funds were $1.14 billion.

U.S. loan participation and short/intermediate investor-grade funds saw outflows in the amounts of $1.84 trillion and $304million, respectively. Weekly inflows to U.S. inflation-protected funds fell to $169 million for the fourth month.

Flows into US bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/klpykngorpg/Flows%20into%20US%20bond%20funds.jpg

U.S. equity fund net purchases reached $7.56 Billion, the largest single inflow over five weeks. After two weeks of net sales, large cap funds brought in $13.09 trillion. However, investors also sold small and mid-cap equity fund worth $1.96 billion to $104 million. After four weeks of net outflows, U.S. growth fund net purchases reached $621 million. Value funds, however, saw net sales of $2.22 Billion, their highest in six consecutive weeks.

Fund flows into U.S. growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/dwvkrzdnbpm/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg

Inflows from technology funds were $2.39 Billion for the third week straight, despite outflows in financials ($1.51 billion) and industrials ($481 million).

U.S. money markets funds recorded net net purchases of $29.27 billion, which is the largest net inflow for five weeks.

Flows into U.S. equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/zjpqkyjgbpx/Flows%20into%20U.S.%20equity%20sector%20funds.jpg