US bond funds rack up biggest weekly inflow in three months
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2023-11-10 19:55
U.S. investors poured a massive sum into bond funds in the seven days leading to Nov. 8 on

U.S. investors poured a massive sum into bond funds in the seven days leading to Nov. 8 on hopes of a turnaround in Treasury bond prices following the Federal Reserve's decision to keep interest rates unchanged.

A report from the U.S. Labor Department indicating a slowdown in job growth in October, also lifted bond prices last week. The yields on the benchmark 10-year U.S. Treasury bonds, which move inversely to prices, hit a five-week low of 4.484% last Friday.

According to LSEG data, U.S. bond funds amassed a net $3.61 billion worth of inflows during the week, the biggest amount since July 5.

U.S. high yield bond funds saw a significant boost in demand as they received a net $6.29 billion, the biggest weekly inflow since mid-April 2020.

Investors also poured about $867 million and $687 million, respectively into general domestic taxable fixed income, and loan participation funds, while pulling a net 1.92 billion out of U.S. short/intermediate government & treasury funds.

Meanwhile, U.S. equity funds secured $1.9 billion, the first weekly inflow in eight weeks.

Small-cap funds were notably in demand as they received $1.96 billion, the biggest amount since June 14. Additionally, large-cap funds saw $930 million worth of net purchases but mid-, and multi-cap funds had outflows of $661 million and $396 million.

By sector, tech and financial sector funds attracted $1.25 billion and $594 million, respectively, while consumer staples had an outflow of $500 million on a net basis.

At the same time, U.S. money market received $6.47 billion, about a tenth of $56.1 billion worth of net purchase in the previous week.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Toby Chopra)

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