March 18 (Reuters) – U.S. bond funds posted big outflows in the week to March 16 as another strong reading on U.S. inflation last week locked in expectations that the Federal Reserve will have to act rapidly on tightening policy to control surging prices.
U.S. investors exited bond funds for a 10th consecutive week, selling $7.24 billion worth, compared with net selling of $7.8 billion in the previous week, Refinitiv Lipper data showed.
The Fed announced a quarter of a percentage point increase to near-zero U.S. interest rates on Wednesday, and signalled it would hike rates more aggressively than expected to tame soaring inflation, following a firm inflation reading last week.
Reuters
March 18, 2022