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According to LSEG data, U.S. bond funds witnessed a net $9.58
billion worth of purchases during the week, the largest inflow
for a week since July 17.
Traders have fully priced in a cut in September, with a 67%
chance of a 25 basis point reduction and a 33% chance of a
bigger 50 bp easing, the CME Fed Watch tool showed.
Investors channeled a hefty $5.42 billion into U.S. government
bond funds, booking their largest weekly net purchase since Oct.
2023.
They scooped up U.S. short/intermediate government and Treasury
funds of $4.84 billion in their largest weekly net purchase
since March 2023. U.S. short/intermediate investment-grade funds
had $1.89 billion worth of inflows.
At the same time, money market funds secured a fourth weekly
inflow in a row, to the tune of about $10.62 billion.
Simultaneously, U.S. equity funds observed a net $2.83 billion
worth of sales during the week following net purchases of $6.58
billion in the previous week.
Investors pulled $1.35 billion out of large-cap funds in a
partial redemption of $5.33 billion worth of net purchases in
the prior week. Mid-cap and multi-cap funds also lost $798
million and $168 million, respectively, in outflows.
Small-cap funds still gained a second weekly inflow, which
amounted to $1.03 billion on a net basis.
By sector, investors shed consumer staples, healthcare and
utilities sector funds of a notable $528 million, $337 million
and $208 million, respectively. The financials sector,
meanwhile, gained a third weekly inflow, worth about $783
million.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; editing by Jonathan Oatis)
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