 U.S. money market fundinflows surge on caution over tariffs |
Source |
American Shipper |
Post Date |
06/18/2025 |
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June 6 (Reuters) - U.S.money market funds witnessed huge inflows in the week ed June 4 as investorcaution over a rise in U.S. tariffs on steel imports, uncertainties overPresident Donald Trumps trade disputes with China and acrucial employment report on Friday, boosted demand for safer investmentavenues.
According to LSEG Lipperdata, U.S. investors bought a net $66.24 billion worth of money market fundsduring the week, registering their largest weekly net purchase since December4, 2024.
Weekly flows into US equity, bond and money market funds in$ million
At the same time, riskierequity funds faced a net $7.42 billion worth of weekly outflows, sharply higherthan approximately $5.39 billion worth of net disposals in the prior week.
The small-cap segmentwitnessed a net $2.99 billion worth of drawdowns, the highest for a week sinceApril 30. Outflows from multi-cap, mid-cap and large-cap funds stood at $2.13billion, $1.05 billion and $962 million, respectively.
Sectoral funds, meanwhile,experienced a minor $136 million worth of inflows with investors adding a net$1.15 billion into tech, and $309 million into consumer staples, whilewithdrawing nearly $1.16 billion from financials.
Weekly flows into US equity sector funds in $ million
Weekly net inflows intoU.S. bond funds, meanwhile, cooled to a four-week low of $4.8 billion duringthe week.
Despite the weaker demandin the broader segment, the short-to-intermediate investment-grade funds turnedpopular, grossing a net $3.98 billion- the highest since November 2024- worthof inflows during the week.
Inflation-protected fundsand general domestic taxable fixed income funds also attracted a significant$634 million and $505 million, worth of inflows.
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