Oct 16 (Reuters) – US equity funds attracted inflows in the week to October 14, following outflows the previous week, as Treasury yields eased from recent peaks and investors looked ahead to a strong earnings season, although the technology sector faced outflows amid concerns over rising debt levels.
Investors purchased a net $13.01 billion in US equity funds during the week, reversing net outflows of $5.1 billion in the previous week, according to LSEG Lipper data.
The technology sector, meanwhile, recorded net outflows of $5.21 billion, its largest weekly outflow since June 24.
The US 10-year Treasury yield fell about 26 basis points from the 24½-year high of 5.3645% reached the previous week, amid expectations that the Federal Reserve may hold interest rates steady at its meeting this month.
Investors also drew confidence from strong corporate earnings expectations in the ongoing earnings season. LSEG data, based on analyst estimates for 2,076 US large- and mid-cap companies, forecasts year-on-year profit growth of 29.99% for the most recent quarter, with the technology sector expected to post growth of 57.64%.
US large-cap equity funds attracted $16.55 billion, reversing roughly $14.08 billion in outflows the previous week. Investors also bought $2.12 billion in multi-cap funds and $541 million in small-cap funds, while selling a net $651 million in mid-cap funds.
US bond funds remained popular for a 26th consecutive week, attracting net inflows of $6.45 billion.
General domestic taxable fixed-income funds recorded $1.91 billion in net inflows, marking a fourth straight week of net purchases. Investors also added $1.61 billion to municipal debt funds and $1.12 billion to short- and intermediate-term government and Treasury funds.
Meanwhile, investors withdrew $45.93 billion from money market funds, following $68.49 billion in net purchases the previous week.
(Reporting by Gaurav Dogra; Editing by Chizu Nomiyama )
