Zhitong Finance APP learned that US bond funds continued to face huge outflows in the week ending May 19 due to market concerns that the Fed will raise interest rates to higher than previously expected levels to control inflation. Federal Reserve Chairman Powell said last week that the Fed will "continue to push" to tighten monetary policy until inflation drops significantly.
Investors sell $8.39 billion worth of U.S. bond funds for the 19th week in a row, according to Refinitiv Lipper.
As of the week ending May 19, investors sold $3.05 billion in U.S. municipal bond funds and withdrew $5.52 billion in taxable funds.
high-yield bond funds outflows were US$2.93 billion, setting the largest single-week net selling in five weeks, while medium and short-term investment-grade funds outflows were US$3.74 billion.
Meanwhile, the U.S. short-term/medium-term government and Treasury funds received capital inflows for the second consecutive week, with a scale of $3.4 billion.
US stock funds have experienced outflows for the sixth consecutive week, with a total scale of US$3.85 billion, but the sell-off has decreased by 54% from a week ago.
After five consecutive weeks of net selling, large U.S. stock funds recorded $2.59 billion inflows, but small and medium-sized equity funds recorded $1.83 billion and $690 million outflows respectively.
The net selling scale of the U.S. Growth Fund and Value Fund was US$1.7 billion and US$200 million, respectively. Among the industry funds, financial stocks and consumer discretionary stocks flowed out $1.34 billion and $610 million, respectively, but utility and health care stocks attracted $780 million and $690 million inflows, respectively.
Meanwhile, investors pulled $20.31 billion from U.S. money market funds, selling for the second consecutive week.
