Make Kitco Your Homepage

U.S. money market funds see biggest weekly inflow in four months -Lipper

Kitco News

Sept 24 (Reuters) - U.S. money market funds attracted massive funds in the week to Sep. 22 as caution about the outcome of a Federal Reserve’s policy meeting and risks of a possible spillover to the global economy from a property group China Evergrande’s troubles, lifted demand for defensive assets.

U.S. money market funds received a net $49.37 billion, which was the biggest weekly inflow since May 26, data from Lipper showed.

The U.S. central bank in its latest policy statement on Wednesday, signalled that it will likely begin reducing its monthly bond purchases as soon as November and the interest rate increases may also follow more quickly than expected.

However, Fed Chair Jerome Powell said the bar for lifting rates from zero is much higher than for tapering.

Meanwhile, U.S. equity funds faced net selling of $2.57 billion, compared with purchases worth $5.55 billion in the previous week.

U.S. equity value funds faced outflows of $3.04 billion, and growth funds saw net selling of $1.49 billion, after each receiving an inflow in the previous week.

Among equity sector funds, consumer staples and industrials, each faced outflows of about $600 million, however, real estate and consumer discretionary received $554 million and $402 million, respectively in inflows.

U.S. bond funds attracted a net $5.8 billion, and marked a 10th consecutive week of inflows.

Purchases in U.S. municipal debt funds and inflation protected funds jumped 30% and 77% respectively from the previous week to $1.37 billion and $1.02 billion. U.S. short/intermediate government & treasury funds also received inflows of $1.46 billion.

Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by David Evans

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.