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Global equity funds see first outflows in five weeks amid rising US yields – TradingView News

In the week ended May 29, global equity funds experienced outflows for the first time in five weeks, led by rising U.S. Treasury yields and investor caution ahead of a key U.S. inflation report that could provide insight into the future direction of U.S. interest rates.

Global equity funds saw an outflow of $4.9 billion, the first drawdown since the week ending April 24, according to Lipper data.

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Thomson ReuterFund Flows: Global Stocks, Bonds and Money Markets Fund Flows: Global Stocks, Bonds and Money Markets

US equity funds saw outflows of $7.6 billion, while Asian equity funds recorded a second straight weekly outflow totaling $1.5 billion. On the other hand, European equity funds attracted inflows of $3.7 billion.

U.S. Treasury yields rose this week after the latest U.S. macroeconomic data revealed an unexpected improvement in consumer confidence in May and improved consumer perceptions of the labor market.

MSCI All Country Stock Index EURONEXT:IACWI fell almost 2% for the week, driven by investor caution ahead of the release of the main U.S. personal consumption expenditure price index report for April, which is scheduled for Friday.

Among sector funds, financial, healthcare and consumer funds recorded $598 million, $570 million and $452 million, respectively. On the other hand, technology and industrial sector funds attracted inflows of $379 million and $289 million, respectively.

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Thomson ReuterFund Flows: Global Equity Sectors Fund Flows: Global Equity Sectors

$4.3 billion flowed into global bond funds, although this was significantly less than the $12.4 billion recorded the previous week.

Global government bond funds, high yield bond funds and loan-linked funds recorded inflows of USD 877 million, USD 337 million and USD 394 million, respectively. At the same time, money market funds experienced $5.7 billion in outflows, a significant decline from the $17.1 billion inflow in the previous week.

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Thomson ReuterWeekly inflows into global bond funds. Weekly inflows into global bond funds

In the commodities sector, precious metals funds saw their first outflows in three months, totaling $580.4 million, while energy funds also reported net sales of around $80 million.

Data from 29,558 emerging markets funds showed net sales of $538.1 million in shares, the biggest outflow in more than a month. Bond funds also saw their first outflow in three weeks, amounting to $952 million.

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Thomson ReuterFund flows: emerging markets stocks and bonds. Fund flows: emerging markets stocks and bonds