U.S. bond funds record outflows for 17th week in a row

　　div classBodysc17zpet90 cdBBJodivpReuters – U.S. investors remained net sellers of bond funds in the week to May 4 as the economy‘s rising inflationary challenges fanned caution ahead of the Federal Reserve’s policy meeting this week.p

　　pAccording to Refinitiv Lipper data, U.S. investors offloaded 5.52 billion worth of bond funds in a 17th straight week of net selling.pdivdivdiv classBodysc17zpet90 cdBBJodiv

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　　ppGraphic: Fund flows: US equities, bonds and money market funds – https:fingfx.thomsonreuters.comgfxmktlgpdwgeggvoFund20flows20US20equities20bonds20and20money20market20funds.jpg p

　　pThe U.S. benchmark 10year Treasury yield hit nearly a 312year high of 3 this week after reports last week showed rising U.S. consumer spending in March and surging labour costs in the first quarter.p

　　pAfter an expected 50basispoint hike to the central banks benchmark overnight interest rate on Wednesday, Fed Chair Jerome Powell ruled out raising rates by 75 basis points in a coming meeting, although he made clear the rate increases the Fed already has in mind were “not going to be pleasant.”p

　　pInvestors sold U.S. taxable bond funds worth 3.82 billion and municipal funds worth 1.75 billion.p

　　pU.S. shortintermediate investmentgrade funds witnessed net selling of 5.46 billion in a 17th straight week of outflows. Loan participation funds, however, obtained inflows of 0.83 billion, the largest amount in three weeks.p

　　pGraphic: Fund flows: US bond funds – https:fingfx.thomsonreuters.comgfxmktbyvrjnaomveFund20flows20US20bond20funds.jpgp

　　pMeanwhile, U.S. equity funds weekly outflows eased to a fourweek low of 3.76 billion.p

　　pU.S. value funds posted their first weekly inflow in seven weeks, worth 854 million, while growth funds saw net selling of 3.93 billion, although that was the lowest outflow in four weeks.p

　　pGraphic: Fund flows: US growth and value funds – https:fingfx.thomsonreuters.comgfxmktakpezyrdovrFund20flows20US20growth20and20value20funds.jpgp

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　　ppAmong sector funds, tech and financials lost 724 million and 593 million, respectively, in net selling, while utilities saw net buying of 542 million. Graphic: Fund flows: US equity sector funds – https:fingfx.thomsonreuters.comgfxmktzgvomleqkvdFund20flows20US20equity20sector20funds.jpg p

　　pU.S. money markets drew net purchases of 2.63 billion, although there was a 94 drop in inflows compared with the previous week.p

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　　pp Reporting by Gaurav Dogra in Bengaluru editing by Paul Simaop

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