May 22 (Reuters) – U.S. equity funds recorded a second weekly outflow in nine weeks in the week to May 20 as investors locked in profits from a recent rally on caution over rising inflation and a surge in long-term borrowing costs.
According to LSEG Lipper data, investors divested a net $12.05 billion of U.S. equity funds in their largest weekly net sales since $24.52 billion of weekly outflows in mid-March.
The 30-year U.S. Treasury yield climbed to 5.201% on Wednesday, the level last seen in 2007, fanning worries over their potential impact on the growth sectors and corporate margins.
By segment, investors divested large-cap, mid-cap and small-cap funds of a net $7.18 billion, $1.86 billion and $555 million, respectively.
The technology sector funds witnessed a seventh successive weekly inflow to the tune of $2.57 billion. Industrial and financial sectors, however, had weekly outflows of $1.45 billion and $1.32 billion, respectively.
U.S. bond funds attracted $12.5 billion, in line with $12.83 billion of net purchases the prior week.
The short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds, and municipal bond funds saw a noticeable $4.63 billion, $4.43 billion and $1.53 billion of weekly net purchases.
Investors, meanwhile, bought a net $12.04 billion worth of U.S. money market funds as they reversed the prior week’s $4.19 billion weekly outflow.
(Reporting by Gaurav Dogra)
