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According to Refinitiv Lipper, investors exited global bond
funds worth $11.99 billion in their fifth weekly net selling in
a row.
Fanning inflationary fears, data last week showed strong U.S.
consumer spending in March and a jump in labor costs in the
first quarter, which raised concerns that the Fed would tighten
policy more aggressively than planned earlier.
After an expected 50 basis point policy rate hike on Wednesday,
the Fed Chairperson Jerome Powell, ruled out raising rates by 75
basis point in a coming meeting, although he made clear that
rate increases the Fed already has in mind were "not going to be
pleasant".
U.S. and European bond funds suffered outflows of $5.58 billion
and $6.24 billion respectively, while Asian funds had marginal
selling worth a net $0.03 billion.
Weekly net selling in global short- and medium-term bond funds
jumped to over a four month's peak of $6.9 billion but
government bonds funds gained $6.18 billion in their biggest
weekly inflow since at least June 2020.
Meanwhile, weekly outflows from global equity funds eased to a
four-week low of $1.79 billion.
By sector, financials and tech witnessed net selling of $634
million and $483 million respectively, however, utilities and
consumer staples received inflows of $497 million and $457
million respectively.
Money market funds saw outflows of $10.79 billion after
attracting purchases of $51.72 billion in the prior week.
Commodities funds' data showed precious metal funds faced
outflows worth $402 million and energy funds posted net selling
of $97 million in a seventh straight week of outflows.
An analysis of 24,183 emerging market funds showed net selling
in both equity and bond funds eased to a three week low of $565
million and $328 million respectively.
(Reporting by Gaurav Dogra in Bengaluru; Editing by Louise
Heavens)
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