May 3, 2018 / 10:59 PM / 2 months ago

UPDATE 1-U.S.-based govt-Treasury funds post 6th week of inflows -Lipper

 (Adds quotes from senior research analyst at Thomson Reuters
Lipper; table)
    By Jennifer Ablan
    NEW YORK, May 3 (Reuters) - Investors did some opportunistic
buying because of higher yields in the debt market as U.S.-based
government-Treasury funds attracted $530 million of net new cash
in the week ended Wednesday, marking the group's sixth straight
week of inflows, according to Lipper data on Thursday.
    Further out in the credit quality spectrum, U.S.-based
high-yield "junk" bond funds attracted inflows of $526 million
in the week ended Wednesday, following the previous week's
outflows of $2.49 billion, according to Lipper.
    The competition for yield has broadened throughout the
credit markets, with yields on Treasury notes and bonds edging
higher since the start of the year.
    "The yield on the benchmark 10 year-Treasury has crept up
all year peaking at just over the 3.00-percent barrier last
week," said Pat Keon, senior research analyst at Thomson Reuters
Lipper. "It has come down a bit since then, closing yesterday at
2.97 percent. It closed 2017 at 2.41 percent. Treasuries are
considered risk-free because they are backed by the U.S.
government. Therefore a good place to park money during
uncertain and/or volatile market activity."
    Overall, U.S.-based taxable bonds attracted $916 million in
the week ended Wednesday, marking the group's eighth straight
week of inflows, Lipper said. U.S.-based money market funds,
whose yields have also climbed higher, attracted $844 million in
the week ended Wednesday, their second straight week of inflows.
    Equity flows have been choppy in recent weeks, underscoring
investor concerns that economic growth has moderated and that
future interest-rate increases by the Federal Reserve could slow
growth.
    U.S.-based equity mutual funds posted outflows of $1.59
billion in the week ended Wednesday, following the previous
week's outflows of $1.9 billion, Lipper data showed. U.S.-based
equity exchange-traded funds - generally believed to represent
the investment behavior of institutional investors, including
fast-moving hedge funds - attracted inflows of $2.7 billion in
the week ended Wednesday, marking their fourth consecutive week
of inflows.
    U.S.-based emerging market equity funds posted outflows of
$611 million for the week, their first weekly outflow of 2018,
according to Lipper data.
    The following is a breakdown of flows for the week,
including mutual funds and ETFs:
 Sector            Flow Chg      %       Assets ($Bil)  Count
                   ($Bil)        Assets                 
 All Equity Funds  1.127         0.02    7,095.977      12,221
 Domestic          1.267         0.03    4,839.155      8,704
 Equities                                               
 Non-Domestic      -0.140        -0.01   2,256.822      3,517
 Equities                                               
 All Taxable Bond  0.916         0.03    2,756.828      6,061
 Funds                                                  
 All Money Market  0.845         0.03    2,666.837      1,041
 Funds                                                  
 All Municipal     -0.345        -0.09   400.487        1,458
 Bond Funds                                             
 
 (Reporting by Jennifer Ablan; Editing by Lisa Shumaker and
James Dalgleish)
  
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