Global investors step up selling in bond funds in the week to March 9

(Reuters) – Global bond funds saw big outflows in the week to March 9 due to a spike in prices and concerns over soaring inflation levels, amid intensifying conflict between Russia and Ukraine.

Investors offloaded global bond funds for the ninth week in a row, amounting $15.75 billion, which was 32% higher than in 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

jumped this week to a 14-year high as U.S. President Joe Biden’s announcement of a ban on Russian oil and energy imports on Tuesday raised further concerns over surging crude prices.

However, crude prices eased later in the week, after the United Arab Emirates pledged to boost oil supply and it became clear the European Union would not join the United States and Britain in banning Russian oil. [O/R]

European bond funds suffered net selling of $8.2 billion, while U.S. funds and Asian bond funds witnessed outflows of $7.85 billion and $0.35 billion respectively.

Global high yield and, short- and medium-term bond funds posted outflows of $5.07 billion and $4.44 billion respectively.

However, government bond funds obtained $1.29 billion, while inflation-linked funds received $1.94 billion in inflows, a two-fold jump in purchases over the previous week.

Graphic: Global bond fund flows in the week ended March 9: https://fingfx.thomsonreuters.com/gfx/mkt/akpezxlmkvr/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20March%209.jpg

Meanwhile, investors disposed of global equity funds worth a net $9.22 billion in a second straight week of net selling, although outflows were 18% lower than the previous week, Refinitiv Lipper data showed.

Financial sector funds faced net selling of over $3 billion for a second successive week. However, mining and energy sector equity funds received inflows worth $1.1 billion and $0.88 billion respectively.

Graphic: Fund flows: Global equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/jnpweboxopw/Fund%20flows-%20Global%20equity%20sector%20%20funds.jpg

Global money market funds received inflows worth $3.06 billion, underscoring investor caution during the week.

Among commodity funds, the demand for precious metal funds jumped to a six-week high as they obtained $1.67 billion in net buying, while, energy funds received $1.3 million.

An analysis of 24,111 emerging market funds showed equity funds had outflows worth $2.49 billion, while bond funds witnessed net selling for a fifth successive week, worth $1.03 billion.

Graphic: Fund flows: EM equities and bonds: https://fingfx.thomsonreuters.com/gfx/mkt/zgvomzdkxvd/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

Disclaimer:
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.