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Us Money Market Funds Attract Sharp Inflows for the Week Ending October 2

US Money Market Funds Attract Sharp Inflows for the Week Ending October 2

U.S. money market funds saw massive inflows in the week to October 2 as investors sought safer assets on caution ahead of a key payrolls report amid heightened geopolitical concerns in the Middle East.

They acquired U.S. money market funds of a net $41.32 billion during the week following about $113.11 billion worth of net purchases in the previous week, according to LSEG Lipper data.

A stronger-than-expected September non-farm payrolls report on Friday, however, eased worries about the health of the U.S. labor market and pared back market bets of a larger Fed rate cut in November.

U.S. equity funds also gained a significant $30.8 billion worth of inflows during the week, the largest amount since at least December 2020.

Large-cap equity funds garnered a hefty $35.49 billion, the highest inflow since at least January 2019. U.S. investors, however, divested mid-cap, multi-cap, and small-cap funds of a net $1.94 billion, $1.72 billion, and $1.31 billion, respectively.

Among sectoral funds, real estate, utilities, and industrial sectors drew $461 million, $356 million, and $321 million worth of inflows, respectively, while healthcare and financials suffered $919 million and $537 million worth of net selling.

Meanwhile, demand for U.S. bond funds eased to the lowest in four weeks as they obtained about $2.8 billion in net purchases.

U.S. short-to-intermediate government and treasury funds had 5.03 billion worth of net sales following three weekly inflows in a row.

Investors, meanwhile, purchased short-to-intermediate investment-grade, municipal debt, and general domestic taxable fixed-income funds of $3.6 billion, $1.88 billion, and $852 million, respectively.

(Source: ReutersReuters)

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Mark Glenn
Mark Glenn is a financial journalist and breaking news reporter for ABBO News. Mark is known for his ability to deliver real-time news updates on market developments, mergers and acquisitions, corporate earnings reports, and regulatory changes, helping investors stay informed and make sound financial decisions.