Investors increase investments in U. S. bonds
2023.02.03 09:47
Investors increase investments in U. S. bonds
By Kristina Sobol
Budrigannews.com – In spite of the country’s economy being in the midst of a slowdown, U.S. bond funds drew money in for a fourth consecutive week in the seven days leading up to February 1 in the hopes of slowing rate hikes.
According to data from Refinitiv Lipper, investors purchased $197 million worth of U.S. bond funds, a significant decrease from the previous week’s $4.84 billion worth.
Flows of cash: US stocks, bonds, and money market funds The Federal Reserve raised its key overnight lending rate on Wednesday to a range of 4.5 percent to 4.75%, which was widely expected. However, Fed Chair Jerome Powell appeared to speak in a press conference more dovishly.
The first weekly net selling of taxable bond funds in five weeks was $252 million, despite investors purchasing $438 million worth of municipal bond funds.
The largest inflows in three weeks were made into U.S. short/intermediate investment-grade funds, totaling $2.81 billion, while net buying was made into U.S. emerging markets debt funds, totaling $273 million.
Flows of cash: In contrast, net purchases of $584 million in small-cap funds slowed U.S. bond fund outflows to a 11-week low of $483 million. However, there were outflows of $3.67 billion and $206 million, respectively, from large and mid-cap funds.
While funds in the energy sector received $436 million in inflows, investors sold funds in the technology and real estate sectors for $261 million and $248 million, respectively.
Flows of cash: Money market funds, on the other hand, received $122 million, marking the second week in a row of inflows.
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