(Reuters] – U.S. Bond funds saw outflows on Jan. 12, for the first time since four weeks. This was due to rising hopes that the U.S. Federal Reserve might tighten its policy by increasing interest rate increases as early as March.

Refinitiv Lipper data shows that investors sold U.S. bonds funds worth $3.15 trillion to mark the first outflow weekly since December 15.

(Fund flows: US equities bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/lbpgnjmalvq/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg)

After interpreting minutes of the December central bank meeting as more hawkish, investors feared the Fed would be more aggressive when raising interest rates. J.P. Morgan, Goldman Sachs (NYSE :), and Deutsche Bank (DE) The Fed is expected to increase rates 4 times this year.

U.S. tax bond funds sold net $2.96 trillion, which is the largest outflow in just four weeks. U.S. municipal bonds funds only received $7 million in inflows.

U.S. short/intermediate and mortgage funds experienced outflows respectively of $1.4 billion, $466 million and $1.8 billion. U.S. loan participation and general domestic tax fixed income funds received inflows each of approximately $1.8 billion.

(Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkndbmvx/Fund%20flows%20US%20bond%20funds.jpg)

Inflation-protected funds saw their first weekly outflow for over five months. However, they only received a $10 million.

U.S. equity fund inflows were $7.99 Billion, the smallest net buy in 4 weeks.

Financials received $2.58 Billion in weekly flows, which is the largest ever since February 2021. Tech, industrials and consumer staples all attracted $0.95 billion, $0.88 million and $0.81 trillion, respectively.

(Fund flows: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/egvbkjbdlpq/Fund%20flows%20US%20equity%20sector%20funds.jpg)

U.S. Investors secured $2.8 Billion in value funds during a fourth week of net purchases, while growth funds received outflows $7.19 Billion, the highest since Dec. 15.

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

U.S. Money Market Funds saw net outflows in excess of $28.4 Billion for the second week running.