(Reuters) – U.S. bond funds witnessed a big increase in inflows in the week to Aug. 25 on caution ahead of a long-awaited speech by the Fed Chair Jerome Powell at the Jackson Hole Symposium, that could give clues about the tapering of U.S. monetary stimulus.
Data from Lipper showed U.S. bond funds secured net inflows of $7.47 billion in the week, a 16% increase from the previous week’s inflows.
Fund flows into U.S. equities bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/znvneeqdbpl/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market.jpg
Minutes from the Fed’s July meeting released last week showed most policymakers expect the Fed to start tapering bond purchases this year, though consumer sentiment and economic data have weakened since that meeting.
U.S. Municipal bond funds attracted a net $1.73 billion compared with inflows of $1.78 billion in the previous week, and U.S. taxable bond funds received about $6 billion, a 28% jump from the previous week.
U.S. government and treasury fixed income funds pulled in a net $766 million, marking the first weekly inflow in three, while general domestic taxable fixed income funds saw net purchases rising 6% over the previous week to $2.47 billion.
Flows into U.S. bond funds https://fingfx.thomsonreuters.com/gfx/mkt/byprjjboxpe/Flows%20into%20U.S.%20bond%20funds.jpg
Meanwhile, investors sold U.S. equity funds worth a net $6.46 billion, despite a rally in stocks that pushed Wall Street to fresh peaks.
U.S. large-cap funds saw net outflows of $4.74 billion and U.S. mid- and small-cap funds also faced net selling.
Among equity sector funds, investors sold metals & mining sector funds of a $416 million, their biggest net outflow in five weeks, though tech sector funds received a net $1.3 billion, their largest weekly inflow in five weeks.
U.S. money market funds received net inflows worth $2.03 billion in the week.
Fund flows into U.S. growth and value funds https://fingfx.thomsonreuters.com/gfx/mkt/akpezzjgevr/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg
Flows into U.S. equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyyjrwvw/Flows%20into%20U.S.%20equity%20sector%20funds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by David Holmes)
