Sep 17 (Reuters) – US money market funds faced large outflows in the week leading up to September 15 as risk sentiment improved as fears of high inflation eased and the US Federal Reserve prematurely suspended stimulus measures after the Data showed a slowdown in the pace of consumer price increases.
Data from Lipper showed US money market funds saw an outflow of $ 43.34 billion for the week ending Wednesday, the largest since December 16.
Cash inflows in US stocks, bonds, and money market funds
The core measure of US consumer prices rose 0.1% last month, the smallest increase since February. The August slowdown gives the Federal Reserve breathing room as it prepares to shrink its massive bond holdings and decide how quickly to start raising rates from near zero. Continue reading
Meanwhile, U.S. equity funds rose $ 5.54 billion net after seeing $ 1.83 billion in outflows the previous week.
U.S. equity mutual funds drew in $ 1.28 billion net and growth funds got $ 208 million net after each one saw an outflow the previous week.
Among the equity funds, tech and real estate funds rose $ 435 million and $ 383 million, respectively, despite financials outflowing $ 845 million.
Flows into US equity sector fundsFunds flows into US growth and value funds
US bond funds rose $ 5.56 billion net for a ninth straight week of inflows.
US short / intermediate investment grade funds saw cash inflows rise two-fold to $ 2.07 billion and US municipal debt purchases rose 27% to $ 1.06 billion. However, the purchase of inflation-linked funds has almost halved to $ 574 million.
flows into US pension funds
Reporting by Gaurav Dogra and Patturaja Murugaboopathie in Bengaluru; Editing by Andrea Ricci
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