(Reuters) – Investments in money market funds surged to its highest level in the week ending March 31 this year as investors advocated safety amid falling bond prices and new lockdowns in Europe and the region with an increasing number of coronavirus- Had to fight infections.
FILE PHOTO: In this May 26, 2020 illustration, rolled euro banknotes are placed on top of US dollar banknotes. REUTERS / Dado Ruvic / Illustration / File Photo
Global money market funds received $ 44.7 billion in inflows for the week, the largest since the week ended December 30, data from Refinitiv Lipper showed.
Stock funds, on the flip side, saw $ 17.6 billion in inflows, the lowest in three weeks put under pressure by a surge in US bond yields.
Overall, equity funds received a net purchase of $ 289.6 billion in the first quarter, the largest since at least 2013, although inflows slowed towards the end of the quarter. (Graphic: Fund flows into global reverse convertibles and money markets)
Last week, capital inflows were led by the financial sector, which posted a net purchase of 2.37 billion, while the industrial sector received $ 1.1. Billions, the largest in four weeks.
Higher oil prices supported inflows into energy funds. However, precious metals funds continued to see outflows due to a decline in gold prices.
Gold fell 11% in the first quarter of this year, marking the worst start to the year since 1982. (Chart: Global fund flows into equity sectors)
Investments in China-focused equity funds fell to $ 148 million last week, the lowest level in three weeks. This was due to concerns about the sanctions the US and its allies had imposed on officials in the Xinjiang region of China on allegations of human rights abuses, leading to retaliation by Beijing.
Meanwhile, net investors bought $ 8.4 billion worth of global bond funds, about 19% more than the previous week. funded by inflows into medium-term US bonds and high-yield bonds. (Chart: Global Bond Fund Flows for the Week Ending March 31)
Analysis of 23,671 emerging market funds found that equity funds saw inflows of $ 2.06 billion, double the week, while bond funds saw outflows of $ 981 million. (Chart: Fund flows into EM stocks and bonds)
Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Adaptation by Shailesh Kuber