(Reuters) – U.S. money market funds faced big outflows in the week to Sept. 15 as risk sentiment improved on eased fears over high inflation and an early tapering of stimulus measures by the U.S. central bank after data showed a slowing in the pace of consumer price increases. Data from Lipper showed U.S. money market funds saw an outflow of $43.34 billion in the week to Wednesday, the largest since Dec. 16.
Graphic: Fund flows into U.S. equities, bonds and money market funds: https://fingfx.thomsonreuters.com/gfx/mkt/jnpweyxdmpw/Fund%20flows%20into%20U.S.%20equities%20bonds%20and%20money%20market%20funds.jpg
The core measure of U.S. consumer prices edged up 0.1% last month, the smallest gain since February. The August slowdown gives the Federal Reserve breathing room as it prepares to reduce its massive bond holdings and decide how soon to begin lifting rates from near zero.
Meanwhile, U.S. equity funds attracted a net $5.54 billion after seeing outflows worth $1.83 billion in the previous week.
U.S. equity value funds lured a net $1.28 billion, and growth funds received a net $208 million, after each saw an outflow in the previous week.
Among equity sector funds, technology and real estate funds secured a net $435 million and $383 million respectively, though financials had an outflow of $845 million.
Graphic: Flows into US equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/lbpgngbagvq/Flows%20into%20US%20equity%20sector%20funds.jpg
Graphic: Fund flows into U.S. growth and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/klvykgdwnvg/Fund%20flows%20into%20U.S.%20growth%20and%20value%20funds.jpg
U.S. bond funds attracted a net $5.56 billion, which marked a ninth consecutive week of inflows. U.S. short/intermediate investment-grade funds saw a twofold increase in inflows to $2.07 billion and purchases in U.S. municipal debt funds surged 27% to $1.06 billion. However, buying in inflation-protected funds nearly halved to $574 million.
Graphic: Flows into US bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrdewkvm/Flows%20into%20US%20bond%20funds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Andrea Ricci)
