Global bond funds gain first weekly inflow

Global bond funds obtained inflows in the week to June 1 after eight weeks of outflows, lifted by strong demand as fears over aggressive monetary tightening and excessive price pressures eased.

Investors purchased a net $6.16 billion worth of global bond funds in their first weekly net buying since March 30, marking the biggest weekly inflow since Jan. 5, according to Refinitiv Lipper data.

Last week, minutes from US central bank's most recent monetary policy meeting hinted potential for a pause in policy rate hikes later in the year.

Investors hope that US jobs data due on Friday might sway the Federal Reserve to slow its current aggressive pace of interest rate hikes over the coming months.

Investors acquired US bond funds of $7.09 billion, while European and Asian funds received inflows of $1.15 billion and $0.08 billion, respectively.

Global high yield bond funds drew $7.62 billion, the largest amount since at least July 2020, while government bond funds lured $4.54 billion.

However, investors disposed global short and medium-term bond funds worth $3.89 billion, recording outflows for the 21st subsequent week.

Meanwhile, global equity funds had purchases worth a net $9.38 billion, the biggest since Feb. 9, amid robust demand for ETFs, which garnered inflows of $14.42 billion.

Among sector funds, healthcare, metals and mining as well as tech funds gained inflows of $1.19 billion, $445 million and $86 million, respectively, but financials lost $1.03 billion in outflows.

Money market funds, meanwhile, saw net selling of $40.99 billion, the biggest since April 13.

Data for commodity funds showed investors exited gold and precious metal funds worth $521 billion after purchases of $1.33 billion in the previous week. Energy funds also had small outflows.