US bond funds record their first weekly exit in more than four months -Lipper

(Reuters) – U.S. bond funds posted a net outflow in the week to November 24, as investors bet the Federal Reserve would become more aggressive in normalizing monetary policy to fight inflation after the President Joe Biden has appointed Jerome Powell president for a second term. According to data from Refinitiv Lipper, investors sold US bond funds with a net worth of $ 158 million, the first outing since the week of July 14.

FILE PHOTO: A trader works in the dealing room of the New York Stock Exchange (NYSE) in Manhattan, New York, United States, August 9, 2021. REUTERS / Andrew Kelly / File Photo

Cash flow to US equity bonds and money market funds:

The two-year U.S. Treasury yield, which typically moves based on interest rate expectations, rose to 0.687% on Tuesday, its highest level since early March 2020.

However, Treasury yields fell on Friday as concerns over a new variant of COVID-19 boosted demand for safe-haven assets.

U.S. taxable bond funds faced net sales of $ 1.08 billion against inflows of $ 3.97 billion the week before. Municipal bond funds attracted $ 598 million in net purchases, the smallest in four weeks.

US investment grade short / mid-range funds had outflows of $ 781 million, but taxable fixed income funds and inflation-protected funds in the US received $ 1.83 billion and $ 1, respectively. $ 15 billion in admissions.

Flows to US bond funds:

US equity funds posted net sales for the second week in a row valued at $ 4.27 billion.

Investors sold large-cap equity funds for $ 4.4 billion, but they bought small and mid-cap equity funds for $ 2.17 billion and $ 1.84 billion respectively.

US growth and value funds posted outflows of $ 2.2 billion and $ 872 million respectively.

Cash flow in US growth and value funds:

Technology and real estate funds attracted $ 730 million and $ 539 million in inflows, respectively, while financial services and health care each recorded more than $ 0.7 billion in inflows.

Flows to funds in the US equity sector:

Meanwhile, US money market funds collected $ 14.98 billion in net purchases, the biggest influx in four weeks.

Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan

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