Global investors have sharply reduced their holdings in bonds and equity funds in the week ending May 18 due to inflationary concerns, and interest rates will continue to plummet.
According to Refinitive Lipper, investors have pulled out of the global bond fund worth .5 18.57 billion, marking the largest weekly outflow since February 16.
Expectations of higher interest rates follow remarks this week by US Federal Reserve Chairman Jerome Powell that the central bank will “push” to tighten US monetary policy until it is clear that inflation is declining.
British inflation hit its highest annual rate since April 1982, when Canada jumped more than expected.
US and European bond funds have witnessed net sales of $ 8.41 billion and $ 8.14 billion, respectively, while Asian funds have attracted small inflows of $ 0.06 billion.
Global short- and medium-term bond funds saw net sales in the 19th subsequent week, amounting to $ 4.62 billion, and outflows of high-yield funds were $ 5.17 billion.
Government bond funds, however, remained in demand as they were tempted by তৃতীয় 5.45 billion in the third week of net purchases.
Sales in the global equity fund continued for the sixth week in a row, although the $ 6.26 billion outflow was about 54% lower than the previous week.
The sector lost $ 2.07 billion and $ 0.84 billion in outflows in funding, financial and consumer considerations, respectively, but utilities and healthcare gained inflows of $ 1.12 billion and $ 0.81 billion, respectively.
Investors disposed of বাজার 7.62 billion in market capitalization for the third consecutive week of net sales.
Commodity fund data show that investors offloaded ধ 1.57 billion worth of precious metals in their largest weekly net sales in 14 months, with energy funds seeing an outflow of $ 249 million.
An analysis of 24,262 emerging market funds found that investors sold $ 1.38 billion in equity funds and $ 4.36 billion in bond funds, marking the sixth weekly outflow in a row.
(Reporting by Gaurab Dogra and Patturaja Murugabupathi in Bangalore; Edited by Barbara Lewis)