September 17 (Reuters) – U.S. money market funds faced significant cash outflows in the week leading up to September 15, as risk sentiment improved on appeased fears of high inflation and a rapid decline in stimulus from the US central bank after data showed a slowdown in the pace of consumer price increases.
Lipper’s data showed that U.S. money market funds posted an outflow of $ 43.34 billion in the week to Wednesday, the largest since December 16.
The basic measure of consumer prices in the United States edged up 0.1% last month, the smallest gain since February. The August slowdown gives the Federal Reserve leeway as it prepares to reduce its massive bond holdings and decide when to start raising rates near zero. Read more
Meanwhile, U.S. equity funds drew $ 5.54 billion net after posting outflows of $ 1.83 billion the week before.
Value US equity funds drew $ 1.28 billion net, and growth funds received $ 208 million net, after each experiencing an exit the week before.
Among equity sector funds, technology and real estate funds took net $ 435 million and $ 383 million, respectively, although financials reported an outflow of $ 845 million.
US bond funds attracted a net amount of $ 5.56 billion, marking the ninth straight week of inflow.
US short / mid-investment grade funds saw inflows double to $ 2.07 billion, and purchases of US municipal debt funds jumped 27% to $ 1.06 billion. However, the purchase of inflation-protected funds almost halved to $ 574 million.
Report by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Andrea Ricci
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