US bond funds witness highest inflows in five weeks

The Investment Company Institute data released on 16th May showed that the US mutual fund investors invested most of the new money into bond funds since early April in the latest week as disappointing US economic data and euro-zone worries hurt equities.
The US mutual fund trade organisation said that bond funds saw estimated net inflows of $7.59 billion in the week ended 9th May, the most in five weeks. Domestic and global equity funds saw combined net outflows of $1.29 billion, an improvement from the previous week’s outflows of $5.31 billion.


For their part, domestic equity funds saw net outflows of $2.4 billion in the latest week, extending the previous week’s $5.5 billion of net outflows. Global equity funds saw inflows of $1.12 billion.


The S&P 500 Index declined 3.4% over the period in response to negative data on euro-zone business activity and fears that Greece would reject an international bailout. Weak figures for both the U.S. services sector and US jobs growth also dragged down markets.