US equity funds recorded net outflows in the week ended October 7, their first weekly net sales since September 16, as investors locked in profits during a market rally amid concerns over rising Treasury yields and persistently high crude oil prices, LSEG Lipper data showed.
Investors withdrew a net $5.11 billion from US equity funds during the week, ending two consecutive weeks of inflows. The S&P 500 had hit a record high of 7,844.52 earlier in the week before easing, as a bond market rout pushed the 10-year Treasury yield to 5.3645%, its highest level since April 2002, weighing on sentiment.
Safety trade emerges
The outflows were concentrated in the broad market: US large-cap, mid-cap and small-cap funds posted net withdrawals of $14.08 billion, $1.03 billion and $834 million respectively. Investors nevertheless made net investments of $5.68 billion in sectoral funds, led by technology, which attracted $4.53 billion, while utilities and industrials drew $1.18 billion and $1.04 billion.
The rotation into safety was most visible in fixed income. US bond funds recorded a weekly record of $19.78 billion in inflows, with investors pouring $6.76 billion into short-to-intermediate government and Treasury funds — the largest amount in six months. Money market funds attracted $68.49 billion, reversing the previous week's $43.6 billion in outflows.
Sources: Reuters
Investors withdrew a net $5.11 billion from US equity funds during the week, ending two consecutive weeks of inflows. The S&P 500 had hit a record high of 7,844.52 earlier in the week before easing, as a bond market rout pushed the 10-year Treasury yield to 5.3645%, its highest level since April 2002, weighing on sentiment.
Safety trade emerges
The outflows were concentrated in the broad market: US large-cap, mid-cap and small-cap funds posted net withdrawals of $14.08 billion, $1.03 billion and $834 million respectively. Investors nevertheless made net investments of $5.68 billion in sectoral funds, led by technology, which attracted $4.53 billion, while utilities and industrials drew $1.18 billion and $1.04 billion.
The rotation into safety was most visible in fixed income. US bond funds recorded a weekly record of $19.78 billion in inflows, with investors pouring $6.76 billion into short-to-intermediate government and Treasury funds — the largest amount in six months. Money market funds attracted $68.49 billion, reversing the previous week's $43.6 billion in outflows.
Sources: Reuters
