Investors offloaded global bond funds of $4.12 billion, that topped previous weeks outflows by about 69%, Refinitiv Lipper data showed.
Fund flows: Global equities bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/egpbkjdarvq/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
Two-year U.S. Treasury yields, which track short-term interest rate expectations, rallied to a 23-month high this week after Federal Reserve officials last week signalled a policy rate hike in March.
Stoking fears that inflation may become more persistent, oil prices hit over a seven year high on Wednesday amid supply concerns and political tensions.
Investors sold U.S. and European bond funds of $1.69 billion and $2.55 billion respectively, although they purchased about $60 million worth of Asian funds.
Global high yield and short-and-medium term bond funds faced net selling of $2.63 billion and $0.83 billion respectively, which marked a second straight week of outflows.
Meanwhile, inflation protected, and government bond funds attracted inflows of $777 million and $528 million respectively.
Global bond fund flows in the week ended Jan 19 https://fingfx.thomsonreuters.com/gfx/mkt/egpbkjdarvq/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
Global investors remailed net buyers in equity funds with net purchases of $8.08 billion, although a five-week low.
Financial sector equity funds drew inflows for a fourth successive week, worth $2.85 billion, health care saw purchases of $511 million, however, investors sold tech and consumer discretionary funds of $886 million and $514 million respectively.
Fund flows: Global equity sector funds
Global money market funds posted the biggest weekly net selling since at least end-Feb 2020, as they faced outflows of $80.12 billion.
Among commodities, precious metal funds attracted $328 million in inflows after an outflow in the previous week, although energy faced a second straight weekly outflow, amounting $60 million.
An analysis of 24,121 emerging market funds showed equity funds received $3.1 billion in net buying, the biggest inflow since mid-March 2021, while bond funds faced outflows of $2.07 billion.
Fund flows: EM equities and bonds
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama)