Global money market funds witness inflows for sixth straight week

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Global money market funds continued to attract strong inflows in cautious trade in the week ended April 5 as a raft of economic data during the week signalled weakening in the U.S. manufacturing activity and a cooling in the labor market.

Funds in the global money market saw purchases worth a net $61.91 billion, that marked a sixth consecutive week of net inflows, data from Refinitiv Lipper showed. Investors also purchased a net $3.38 billion worth of government bond funds.The U.S., European and Asian money market funds obtained inflows worth $42.51 billion, $25.62 billion and $280 million, respectively.

Riskier equity funds, meanwhile, witnessed $8.37 billion worth of outflows after $17.99 billion net selling in the previous week. Financials and healthcare sector funds logged outflows of $1.54 billion and $979 million, respectively, although tech received $616 million worth of inflows.Meanwhile, global bond funds drew $15.16 billion worth of inflows, the biggest amount since July 2021.

Investors purchased $5.26 billion worth of high yield and $1.71 billion worth of target maturity bond funds, but sold $1.15 billion worth of short-term bond funds.Among commodities, precious metal funds received $685 million in a fourth successive week of net buying, while energy funds saw a marginal $68 million worth of net selling after two weeks of inflows in a row.

Data for 23,935 emerging market funds showed equity and bond funds, both obtained a second weekly inflow, amounting $397 million and $412 million, respectively.Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Sherry Jacob-Phillips

 

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