Categories: Economy

US bond funds undergo fifth weekly outflow on tariff-driven inflation fears


(Reuters) -U.S. bond funds got here below heavy promoting stress within the week to April 16, highlighting considerations that U.S. President Donald Trump’s tariff measures may gasoline inflation and push the economic system right into a recession.

Buyers divested U.S. bond funds for a fifth successive week to the tune of $10.07 billion on a internet foundation, whereas within the earlier week there have been about $15.64 billion value of internet gross sales, information from LSEG Lipper confirmed.

U.S. short-to-intermediate investment-grade funds had a internet $6.3 billion value of disposals after a internet $6.66 billion value of gross sales within the earlier week.

Buyers additionally shed U.S. common home taxable fastened earnings funds of about $2.22 billion, in distinction, U.S. short-to-intermediate authorities and treasury funds noticed a internet $6.82 billion value of inflows.

In the meantime, U.S. buyers ditched fairness funds value a internet $10.62 billion, contrasting with $6.5 billion value of internet purchases within the prior week.

The tech, healthcare and shopper staples sectors had been hit by a internet $819 million, $514 million and $348 million value of gross sales respectively through the week.

Buyers additionally offloaded $131.74 billion value of cash market funds, extending outflows right into a second consecutive week.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru. Enhancing by Jane Merriman)

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