Global bond funds receive biggest weekly inflow in nine months


The DAX chart of the German stock price index is pictured on the stock exchange in Frankfurt, Germany, August 4, 2022. REUTERS/Staff

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Aug 5 (Reuters) – Global bond funds got their biggest weekly inflow in nine months and purchases of money market funds also rose in the week to Aug 3 as investors favored safety amid concerns caused by the risk of a global recession.

Additionally, nervousness over an escalation in US-China tensions following US House Speaker Nancy Pelosi’s visit to Taiwan dampened investors’ appetite for risky assets.

According to Refinitiv Lipper, global bond funds saw net purchases of $14.4 billion, the biggest weekly inflow since Nov. 3.

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Meanwhile, money market funds also attracted $7.03 billion, a 66% increase in inflows from the previous week.

Fund flows: global equities, bonds and money market

Data released during the reported week showed growth in U.S. factory activity weakened to a two-year low in July. Figures from Europe and Asia also pointed to a slowdown or contraction in production activities amid falling demand, raising further concerns about global growth. Read more

Global government bond funds attracted $3.77 billion after an outflow the previous week, while short- and mid-term bond funds received their first weekly inflow since Jan. 5, net $1. $59 billion.

Flows of global bond funds during the week ended August 3

However, global equity funds suffered outflows of $10.42 billion in a sixth consecutive week of net sales.

US and European equity funds saw withdrawals of $6.84 billion and $4.81 billion, respectively, but investors poured $0.86 billion into Asian funds.

Fund flows: global equity sector funds

Data from commodities funds showed that gold and precious metals funds recorded a sixth weekly outflow, valued at $382 million, while energy funds saw a marginal outflow of $48 million. .

An analysis of 24,414 emerging market funds showed that bond funds gained $954 million in inflows after seven consecutive weekly exits, but equity funds lost $534 billion in a third weekly exit .

Fund flows: emerging market stocks and bonds
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Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shailesh Kuber

Our standards: The Thomson Reuters Trust Principles.


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