U.S.-based taxable bond funds attract $3.3 billion: Lipper
NEW YORK (Reuters) - Investors committed $3.3 billion to U.S.-based taxable bond funds in the week ending Sept 25 in the wake of the Federal Reserve's decision not to reduce its bond-buying program, data from Thomson Reuters' Lipper service showed on Thursday.
It was the largest cash flow into taxable bond funds since the week ended July 24. Selling pressure on bonds tempered after the Fed decided to leave its $85 billion in monthly bond purchases unchanged on September 18.
The yield on the 10-year U.S. Treasury note fell six basis points to 2.63 percent over the seven-day period. Bond yields move inversely to their prices.
High-yield junk bond funds drew $3.1 billion in the week, also the most in nine weeks, while investment-grade bond funds attracted $1.3 billion, up from inflows of $420 million the previous week.
Investors also parked cash in money market funds, which attracted $28 billion in new money, the largest inflow since January. Money market funds are low-risk vehicles that invest in short-term securities.
Stock funds, meanwhile, attracted $3.5 billion in new money despite the Standard & Poor's 500 stock index's decline of 1.9 percent over the reporting period. Emerging market stock funds pulled in $1.9 billion of that sum.
Japanese stock funds took in $541 million, marking their third straight week of inflows. Commodities and precious metals funds attracted $53 million, their first inflows in four weeks.
(Reporting by Sam Forgione; Editing by Leslie Gevirtz)