(Reuters) – Investors pulled out of U.S. bond funds heavily in the week ending April 9 in a broad selloff triggered by fears of a recession and concerns that the escalating U.S.-China trade war could fuel inflation.<\/p>\n
Investors withdrew a net $15.64 billion from U.S. bond funds during the week, the largest amount for a week since December 21, 2022, data from LSEG Lipper showed.<\/p>\n
U.S. Treasuries saw heavy selling this week after President Donald Trump escalated the trade war with China, lifting tariffs on Chinese imports on Wednesday to an effective rate of 145% and fuelling concerns that Beijing could raise its own duties. China did take that step on Friday, hiking its tariffs on U.S. imports to 125%.<\/p>\n
The general domestic taxable fixed-income funds, short-to-intermediate investment-grade funds and loan participation funds saw a noticeable $6.93 billion, $6.66 billion and $6.51 billion worth of weekly net sales.<\/p>\n
The U.S. short-to-intermediate government and Treasury funds, however, still received a massive $8.89 billion worth of inflows.<\/p>\n
At the same time, investors poured $6.44 billion into U.S. equity funds, in a reversal from $10.83 billion worth of net sales a week ago.<\/p>\n
TD Securities said in a note that as global sentiment soured and equity prices fell, low-cost index fund investors likely bought the dip, driven by a ‘buy and forget’ mindset and the belief that timing the market is nearly impossible.<\/p>\n
Investors poured $17.71 billion into large-cap funds during the week, while pulling $1.9 billion and $1.43 billion from mid- and small-cap funds, respectively.<\/p>\n
Sectoral funds saw $4.73 billion in net outflows, led by a sharp $2.05 billion withdrawal from financial sector funds \u2014 the biggest weekly outflow since April 2022.<\/p>\n
U.S. money market funds, meanwhile, witnessed about $26.67 billion worth of outflows following two weekly inflows in a row.<\/p>\n
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; William Maclean)<\/p>\n","protected":false},"excerpt":{"rendered":"(Reuters) – Investors pulled out of U.S. bond funds heavily in the week ending April 9 in a…\n","protected":false},"author":2,"featured_media":15264,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[10449,51,1700,16,15],"class_list":{"0":"post-15263","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bond-funds","9":"tag-business","10":"tag-economy","11":"tag-uk","12":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114328130356471091","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/15263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=15263"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/15263\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/15264"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=15263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=15263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=15263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}