March 12, 2020 / 9:31 PM / 22 days ago

REFILE-UPDATE 1-U.S. money market funds get record inflow in stressful week -Lipper

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March 12 (Reuters) - U.S. money market funds took in a record $87.6 billion in the week to Wednesday as stocks on Wall Street buckled, investors moved to cash and panic about the spreading coronavirus roiled global financial markets, data from Lipper showed.

U.S.-based stock funds in the latest week shed $1.2 billion, the data showed, while taxable bond funds shed $11.2 billion, the biggest weekly outflow since January 2019.

The World Health Organization labeled the coronavirus a pandemic on Wednesday and the Dow Jones Industrial Average slid past the bear market threshold, down more than 20% from its high in February.

The selling continued on Thursday, officially ending the record bull run in the S&P 500, which closed down more than 25% from its record on Feb 19. The Lipper fund flows data, released every Thursday, showed U.S. domestic equity funds have lost $34.04 billion in the three weeks since Feb 19.

The move to safety drove money into government debt. U.S. Treasury yields fell to record lows on Monday, before bond selling kicked in as many assets were sold under tightening dollar-funding conditions.

The New York Federal Reserve announced on Wednesday it would substantially increase the liquidity it provides to overnight lending market - a signal it would do what it could to keep money markets running smoothly. On Thursday it announced it would introduce $1.5 trillion in new repo market operations this week. (Full Story) (Reporting by Alden Bentley; Editing by Sandra Maler and Dan Grebler)

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