Saturday 03 Jun 2023
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(May 26): US money market funds saw big inflows in the week to May 24 as investors favoured safer bets ahead of a deadline for politicians to agree an increase in the country's debt ceiling.

According to Refinitiv Lipper data, US money market funds received a net US$39.9 billion (RM183.6 billion) of inflows, the biggest week of net buying in four weeks.

US President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal to raise the government's US$31.4 trillion debt ceiling for two years, a US official told Reuters, but time is running short.

The US Treasury estimates it will run out of funds within a week, and legislating any deal will take that down to the wire.

Meanwhile, riskier equity funds saw outflows for a ninth straight week, worth US$1.79 billion.

Investors sold US$1.06 billion from US equity value funds and US$703 million from growth funds, respectively.

Meanwhile, sectoral equity funds remained in demand as they drew a net US$335 million worth of inflows. The tech sector received a net US$420 million while the consumer discretionary sector received a net US$289 million.

On the other hand, US bond funds attracted a fourth week of inflows, worth about US$4.22 billion.

Government bond funds received US$2.43 billion in a fifth straight week of net buying.

US corporate funds drew US$1.72 billion of inflows while high yield funds saw US$677 million of inflows, but inflation protected funds suffered a sixth weekly outflow of US$565 million.

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