GRAPH-US bond funds record highest weekly inflow in 18 months at early January

Jan 13 (Reuters) – U.S. bond funds drew their biggest weekly inflow in 18 months in the seven days to Jan. 4, as signs of cooling inflation buoyed hopes the Federal Reserve could cut size. of their interest rate hikes.

Data from Refinitiv Lipper showed that US bond funds attracted net purchases of $10.52 billion, the largest weekly inflow since the end of June 2021.

Data released Thursday showed U.S. consumer prices unexpectedly fell for the first time in more than 2 1/2 years in December amid falling costs for gasoline and other goods, suggesting that inflation now has a sustained downward trend.

Taxable bond funds in the country received $8.8 billion, the largest weekly inflow since the end of June 2021, while municipal bond funds drew in dollars a net of $1.74 billion.

Investors bought $3.63 billion worth of short/intermediate investment grade funds in their largest weekly net buy since January 2022, while high-yield general national taxable fixed income funds and government bond funds they received $2.35 billion, $1.82 billion, and $927 million, respectively.

Meanwhile, capital outflows fell to an eight-week low of $2.01 billion.

US growth and value funds remained out of favor, with net sales value around $4 billion and $757 million, respectively.

However, some sector funds saw buying interest, with investors buying funds from the industrials, financials and materials sectors for a net value of $1.13 billion, $477 million and $435 million, respectively. Money market funds, meanwhile, posted $17.22 billion in outflows after two weeks of inflows.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing in Spanish by Manuel Farías)

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