Global bond funds see big outflows in week to April 13

NEW YORK (April 18) - Global bond funds witnessed massive money outflows in the week to April 13, as investors were worried that the Federal Reserve would start tightening its policy more aggressively to contain rising price pressures, which could slow economic growth.

According to Refinitiv Lipper, global investors shed bond funds worth $14.5 billion in the reported week, compared with $1.15 billion worth of net disposals in the previous week.

Fund flows: Global equities bonds and money market

The benchmark 10-year U.S. Treasury yield hit a three-year high last week in the wake of hawkish comments from Fed officials. read more

Meanwhile, data released last week showed that U.S. consumer prices increased by the most in 16-1/2 years in March but underlying pressures moderated as goods prices, excluding food and energy, dropped by the most in two years. read more

Among regions, U.S. bond funds witnessed massive outflows of $12.57 billion. Investors also sold European and Asian funds of $2.99 billion and $0.42 billion, respectively.

Investors offloaded global short- and medium-term bond funds of $6.55 billion, and exited high-yield bond funds worth $6.21 billion, marking the biggest outflow in two months.

Meanwhile, inflation-protected funds gained $659 million in a seventh straight week of net buying.

KITCO