GRAPHIC-Global equity fund investors halt eight-week buying streak as bond yields rise

According to LSEG Lipper data, investors liquidated a ‌net $6.13 billion of global equity funds during the week, logging their first weekly net sales since mid-March, when they had withdrawn a net $21.87 billion.

Global equity funds recorded the first weekly outflow ​in nine weeks in the week ​through May 20, as investors turned ‌cautious ​over inflation and a rise in long-term borrowing costs to nearly two-decade highs. According to LSEG Lipper data, investors liquidated a ‌net $6.13 billion of global equity funds during the week, logging their first weekly net sales since mid-March, when they had withdrawn a net $21.87 billion. The 30-year U.S. Treasury yield climbed to 5.201% on Wednesday, ‌its highest since 2007, as uncertainty around a possible resolution to the Middle East ‌conflict raised concerns over energy prices and inflation. It last traded at 5.0795%. U.S. equity funds suffered the second weekly outflow in three weeks, to the tune of $12.05 billion. Asian funds also recorded net outflows of $570 million, ⁠though ​European funds attracted a net $4.62 ⁠billion in inflows. Technology sector funds were popular for a seventh successive week, with net inflows of $6.94 billion. Financials ⁠and industrials, however, had weekly outflows of $2.8 billion and $1.3 billion, respectively. Investors, meanwhile, bought a net $21.89 billion ​of global bond funds as they extended the recent buying streak into a seventh successive ⁠week.

Short-term bond funds, government bond funds and euro-denominated bond funds witnessed significant weekly net purchases of $7.47 billion, $3.09 billion and $1.68 ⁠billion, respectively. Money ​market funds recorded a lighter $1.06 billion weekly net inflow, after a net outflow of $10.41 billion the prior week. Gold and precious metals commodity funds saw a net $2.34 billion of ⁠weekly inflows, remaining popular for a second straight week. In emerging markets, investors shed a ⁠net $2.95 billion of equity ⁠funds, resulting in a fourth straight week of outflows. They also withdrew $256 million from bond funds after a run of six weekly purchases, ‌combined data ‌for 28,926 funds showed.