UPDATE 1-U.S.-based bond mutual funds attract $1.3 bln - ICI
NEW YORK, Oct 2 (Reuters) - Investors in U.S.-based mutual funds put $1.3 billion into bond funds in the latest week in the wake of the Federal Reserve's decision not to reduce its bond-buying program, data from the Investment Company Institute showed on Wednesday. The inflows into bond funds in the week ended Sept. 25 were the first since the week ended July 24, data from ICI, a U.S. mutual fund trade organization, showed. The inflows reversed the prior week's outflows of $2.6 billion. On Sept. 18, the Fed decided to leave its $85 billion in monthly bond-buying unchanged. The yield on the benchmark 10-year U.S. Treasury note plunged 17 basis points to 2.69 percent following the Fed decision. As yields fall, prices rise. Funds that hold municipal bonds had outflows of just $289 million in the latest week, the smallest since the week ended May 29 but still marking the 18th straight week of withdrawals, ICI data showed. Stock funds had outflows of $3.6 billion, the biggest outflows since the week ended May 1, the data showed. The outflows reversed inflows of $3.4 billion the prior week. Withdrawals of $3.8 billion from funds that hold U.S. stocks accounted for the outflows, while funds that hold non-U.S. stocks had small inflows of $196 million. The S&P 500 stock index fell 1.9 percent over the reporting period. Hybrid funds, which can invest in stocks and fixed income securities, attracted $1.3 billion in new cash, down from the prior week's inflows of $1.6 billion. The following table shows estimated ICI flows for the past five weeks (all figures in millions of dollars): 8/28/13 9/4/13 9/11/2013 9/18/2013 9/25/2013 Total Equity -274 905 5,233 3,395 -3,578 Domestic -1,411 -697 2,467 44 -3,775 World 1,137 1,602 2,766 3,351 196 Hybrid* 1,135 349 1,282 1,573 1,288 Total Bond -9,302 -6,757 -5,511 -2,643 1,288 Taxable -6,388 -4,710 -2,805 -895 1,577 Municipal -2,913 -2,048 -2,706 -1,748 -289 Total -8,440 -5,503 1,003 2,325 -1,003 *Hybrid funds can invest in stocks and/or fixed income securities.
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