U.S. bond funds post biggest weekly outflow in three months

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 29, 2022. REUTERS/Brendan McDermid

Sept 30 (Reuters) - U.S. bond funds witnessed massive outflows in the week to Sept. 28 as investors girded for further rates hikes from the Federal Reserve to control stubborn inflation. read more

Investors withdrew a net $9.08 billion out of U.S. bond funds, marking their biggest weekly net selling since June 22, Refinitiv Lipper data showed.

Fund flows: US equities, bonds and money market funds

The benchmark U.S. Treasury 10-year yields , which move inversely to prices, briefly jumped to 4.019% on Wednesday, the highest since Oct. 2008.

Outflows from U.S. short/intermediate investment-grade and high-yield bond funds surged to $6.28 billion and $3.2 billion respectively from $3.59 billion and $1.81 billion in the previous week.

Government bond funds however, received $6.92 billion, marking their biggest weekly inflow since May 18.

Fund flows: US bond funds

Meanwhile, U.S. equity funds witnessed disposals of $4.86 billion after a weekly net purchase worth $3.99 billion.

Growth and value were both out of favour with net outflows of $4.28 billion and $2.04 billion respectively.

Fund flows: US growth and value funds

Among sector specific funds, industrials, healthcare and financials suffered net selling of $740 million, $632 million and $529 million respectively.

Fund flows: US equity sector funds

Meanwhile, safer money market funds obtained a net $3.74 billion in a second straight week of net buying.

Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama

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