(Reuters] – Money outflows from global bond funds increased for the tenth week consecutively in the week ending March 16 due to higher U.S. Inflation levels. This prompted concerns that the Federal Reserve might need to be more aggressive to curb rising prices.

Refinitiv Lipper data indicated that global bond funds valued at $17.01billion were sold by investors after they had been purchased for $15.75 billion the week before.

Graphic: Fund flows: Global equities, bonds and money markets: https://fingfx.thomsonreuters.com/gfx/mkt/xmvjoezjapr/Fund%20flows-Global%20equities%20bonds%20and%20money%20markets.jpg

On Wednesday, the Fed increased interest rates by a quarter point to close to zero. It also signaled that it will hike rates aggressively to contain inflation after a last-week firm reading.

Sentiment was also affected by the announcement made by the European Central Bank that asset purchases would cease in third quarter.

European bond funds experienced outflows of $9.11 trillion, while U.S. bonds funds had net sales at $7.24 billion and $0.4 billion respectively.

The largest net sale in just four weeks was for global high-yield funds, which lost $4.88B. Short- and medium-term withdrawals from government funds were $3.95 billion, $0.88 billion, respectively.

Inflation-linked funds however received $1.15 Billion in the third week straight of inflows.

Graphic: Global bond fund flows in the week ended March 16: https://fingfx.thomsonreuters.com/gfx/mkt/zdvxoklkdpx/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20March%2016.jpg

For the third week in a row, investors were net sellers of equity funds worldwide. They drew $11.8 million.

Inflows into global tech, consumer discretionary and industrial funds totaled $1.28 trillion, $0.88 billion, and $0.79billion, respectively. Health care and mining fund inflows were approximately $1.2 billion each.

Graphic: Fund flows: Global equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgarampb/Fund%20flows-%20Global%20equity%20sector%20%20funds.jpg

Following three weeks of net inflows global money market funds recorded $44.68 billion of net selling.

Inflows to commodity funds were $1.39 Billion for precious metals funds in the 9th consecutive week of net purchasing, and $129 Million for energy funds.

Analysis of 24062 emerging markets funds found that equity funds suffered $5.4 Billion in weekly outflows, while bonds funds had outflows $1.38 Billion.

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