(Reuters) – Global bond funds saw large outflows in the week ending March 9 on a rise in crude oil prices and concerns about rising inflation levels amid the deepening conflict between Russia and Ukraine.
Investors sold $15.75 billion in global bond funds for the ninth straight week, up 32% from the previous week.
Graphic: Fund Flows: Global Equities, Bonds and Money Market: https://fingfx.thomsonreuters.com/gfx/mkt/gdpzybgdevw/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
Brent crude rose to a 14-year high this week as US President Joe Biden’s announcement on Tuesday that he would impose a ban on Russian oil and energy imports raised further concerns about rising crude prices.
However, crude oil prices eased later in the week after the United Arab Emirates pledged to increase oil supplies and it became clear that the European Union would not join the United States and Britain in banning Russian oil. [O/R]
European bond funds suffered net sales of $8.2 billion, while US funds and Asian bond funds saw outflows of $7.85 billion and $0.35 billion, respectively.
Global high yield and short and intermediate-term bond funds saw outflows of $5.07 billion and $4.44 billion, respectively.
Treasury funds, however, received $1.29 billion, while inflation-linked funds received $1.94 billion in inflows, doubling purchases from the previous week.
Chart: Global bond fund inflows for the week ending March 9: https://fingfx.thomsonreuters.com/gfx/mkt/akpezxlmkvr/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20March%209.jpg
Meanwhile, investors sold $9.22 billion net in global equity funds for the second straight week of net sales, despite outflows being 18% lower than the previous week, data from Refinitiv Lipper showed.
Financial sector funds faced net selling in excess of $3 billion for the second straight week. However, equity funds in the mining and energy sectors received inflows of $1.1 billion and $0.88 billion, respectively.
Chart: Flows of Funds: Global Equity Sector Funds: https://fingfx.thomsonreuters.com/gfx/mkt/jnpweboxopw/Fund%20flows-%20Global%20equity%20sector%20%20funds.jpg
Global money market funds received $3.06 billion in inflows, underscoring investor caution for the week.
Among commodity funds, demand for precious metals funds surged to a six-week high as they generated $1.67 billion in net purchases, while energy funds received $1.3 million.
An analysis of 24,111 emerging market funds found that equity funds saw outflows of $2.49 billion, while bond funds posted net sales of $1.03 billion for the fifth consecutive week.
Graphic: Fund Flows: EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/zgvomzdkxvd/Fund%20flows-%20EM%20equities%20and%20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alison Williams)
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