(Reuters) – U.S. equity funds saw outflows for the third straight week in the week to October 12 as stocks were buoyed by recession fears Fight interest rates and inflation.
U.S. equity funds face $2.1 billion this week after net sales totaled 11 dollars, Refinitiv Lipper data show of capital outflows. 1 billion in the first two weeks.
Worries about rising inflation levels intensified following an unexpected rise in U.S. producer prices in September, while caution ahead of the minutes of the Federal Reserve’s last meeting also dampened stock market flows.
U.S. bond funds also saw outflows worth $4.9 billion, the biggest outflow in two weeks, as global bonds were hit by a slump in U.K. government bonds.
876 Yield -Year US Treasuries climbed to 4 this week. 08%, the highest in 14 years, as higher inflation stoked fears that the Fed’s continued efforts to rein in inflation would trigger a recession.
U.S. inflation-linked bond funds outflow valued 417 $ million, while U.S. high-yield bond funds saw outflows in one week 876One million U.S. dollars.
The Ishares iboxx High-Yield Corporate Bond ETF tumbled to its lowest level since March on Thursday 2020, after U.S. inflation data showed The US will continue to raise interest rates in response to rapidly rising prices.
On the other hand, lower risk U.S. money market funds attracted $5.8 billion in inflows, while U.S. government bonds saw inflows of $3.7 billion.