US bond funds see weekly inflows after four weeks

US bond funds see weekly inflows after four weeks

Investors were net buyers of U.S. bond funds in the week ended July 6 as rising worries over economic growth increased demand for safe-haven U.S. debt.According to Refinitiv Lipper data, U.S. bond funds attracted a net $2.72 billion in purchases, marking their first weekly inflow since June 1.

The U.S. benchmark 10-year yield dropped to a six-week low of 2.746 earlier this week, as investors pared back expectations on U.S. policy rate increases as concerns about an economic downturn increase.

Investors purchased U.S. government and treasury fixed income funds of $5.68 billion, marking the biggest weekly inflow since at least October 2018. They also acquired high yield bond funds of $1.59 billion.

U.S. equity funds witnessed a second weekly net selling, worth $4.89 billion, which was a 32% bigger outflow than a week ago.

Investors sold U.S. growth as well as value funds for a second consecutive week, that amounted to outflows of $2.53 billion and $2.19 billion, respectively.

Among sector funds, health care funds lured $1.09 billion worth of inflows, but financials, metals & mining, and industrials suffered $1.08 billion, $708 million and $630 million worth of net selling.

Meanwhile, money market funds drew a net 23.76 billion in net buying after three successive weeks of outflows.