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Investors rack up U.S. money market funds for a third straight week

Published 03/31/2023, 07:20 AM
Updated 03/31/2023, 07:26 AM
© Reuters. FILE PHOTO: The Charging Bull, or Wall Street Bull, is pictured in the Manhattan borough of New York City, New York, U.S., January 16, 2019. REUTERS/Carlo Allegri/File Photo

(Reuters) - Money continued to flow into safer U.S. money market funds for a third consecutive week as investors remained unsettled about the banking sector crisis, with slowdown worries also affecting the sentiment.

According to Refinitiv Lipper data, U.S. money market funds received a net $59.31 billion worth of inflows in the week to March 29. They have received about $273.3 billion worth of inflows so far this month.

(Graphic: Fund flows: US equities, bonds and money market funds - https://fingfx.thomsonreuters.com/gfx/mkt/lbpggjazwpq/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg)

Meanwhile, investors turned net sellers of $20.68 billion worth of U.S. equity funds after $10.17 billion worth of net purchases in the previous week.

They exited large, small and mid-cap equity funds of $8.25 billion, $2.43 billion and $1 billion, respectively.

Among sector funds, financials, industrials and consumer staples saw withdrawals of $931 million, $617 million and $499 million, respectively, although tech received $926 million worth of inflows after witnessing outflows for six weeks in a row.

(Graphic: Fund flows: US equity sector funds - https://fingfx.thomsonreuters.com/gfx/mkt/lgpdkjyaavo/Fund%20flows%20US%20equity%20sector%20funds.jpg)

Meanwhile, investors turned net sellers of U.S. bond funds with disposals of $1.37 billion after about $2.87 billion worth net purchases in the previous week.

© Reuters. FILE PHOTO: The Charging Bull, or Wall Street Bull, is pictured in the Manhattan borough of New York City, New York, U.S., January 16, 2019. REUTERS/Carlo Allegri/File Photo

They sold high yield and short/intermediate investment-grade funds of $2.28 billion and $2.2 billion, respectively, but government funds drew a net $4.08 billion, marking a seventh weekly inflow in a row.

(Graphic: Fund flows: US bond funds - https://fingfx.thomsonreuters.com/gfx/mkt/dwpkdkwlnvm/Fund%20flows%20US%20bond%20funds.jpg)

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