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Us Money Market Funds Saw Significant Demand Before Us Elections

US Money Market Funds Saw Significant Demand Before US Elections

U.S. investors moved large amounts of money to the safety of money market funds in the week to November 6 as they cautiously awaited the U.S. presidential election outcome and the Federal Reserve’s policy decision.

According to LSEG data, investors acquired U.S. money market funds of a net $78.68 billion during the week, registering their largest weekly net purchase since September 25.

U.S. equity funds also saw about $3.96 billion worth net purchases during the week following two weeks of outflows in a row, thanks to a robust $7.27 billion worth of net inflows in the large-cap segment during the week.

U.S. mid-cap funds also witnessed $299 million worth of net purchases, but the multi-cap and small-cap segments experienced net outflows of $2.47 billion and $53 million, respectively.

Investors pumped a net $1.01 billion into the industrial sector in their largest weekly net purchase since July 17. Conversely, the financials and consumer staples sectors saw a net $420 million and $354 million worth of sales.

U.S. bond funds lured inflows for the 23rd week in a row, with investors securing a substantial $8.05 billion worth of funds on a net basis.

The short-to-intermediate investment-grade U.S. funds witnessed a sharp $3.1 billion worth of net purchases, the eighth weekly inflow in a row. General domestic taxable fixed income, and municipal debt funds also received a notable $1.92 billion and $1.26 billion, respectively.

(Source: Reuters)