October 17, 2018 / 4:21 PM / 2 months ago

U.S. fund investors pull most cash from bonds since February -ICI

    NEW YORK, Oct 17 (Reuters) - U.S. fund investors dumped
bonds during a market rout in the latest week, at the fastest
pace since February, Investment Company Institute (ICI) data
showed on Wednesday.
    More than $7.1 billion dropped out of U.S.-based bond mutual
funds and exchange-traded funds (ETFs) during the seven days
ended Oct. 10 as a debt market selloff pushed yields to
seven-year highs. Nearly $1.7 billion flowed out of municipal
bonds alone, the most cash pulled since the end of 2016.
    The week's withdrawals were the largest for bond funds since
early February, a rout sparked by similar inflation and rate
concerns.
    Overall, bond funds have been a popular bet this year,
taking in nearly $133 billion, according to the research service
Lipper, as investors took advantage of higher yields but were
skittish that economic growth could peak with the Federal
Reserve raising U.S. interest rates to head off inflation.
    Within stocks, fund investors shifted money abroad for a
second straight week as the S&P 500 benchmark sagged 4
percent. Domestic equity fund withdrawals totaled $3 billion,
while their counterparts invested abroad gathered $502 million
despite the market swings.
    The following table shows estimated ICI flows for mutual
funds and ETFs (all figures in millions of dollars):
                 10/10    10/3    9/26    9/19  9/12/2018
 Equity         -2,542  -4,282  -1,182  10,193     -3,371
    Domestic    -3,044  -4,806     930  10,544     -3,829
    World          502     524  -2,112    -351        458
 Hybrid         -1,812  -2,099  -1,768  -1,299     -1,673
 Bond           -7,137   6,497   1,697   4,348      7,190
    Taxable     -5,484   6,499   2,083   4,231      7,160
    Municipal   -1,653      -2    -385     116         30
 Commodity         138    -188     253     -91        -57
 Total         -11,353     -72  -1,000  13,151      2,089
 
 (Reporting by Trevor Hunnicutt; Editing by David Gregorio)
  
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