U.S. bond funds see inflows surge as investors rush to safety – Lipper

(Reuters) – Money flows into U.S. bond funds jumped in the week to Aug. 4, as investors rushed towards safety on fears over the rapid spread of the Delta variant of COVID-19 and slowing manufacturing activity.

A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 5, 2021. REUTERS/Andrew Kelly

Data from Refinitiv Lipper showed U.S. bond funds attracted a net $6.66 billion, the most in four weeks.

U.S. government and municipal debt funds received $3.4 billion, the most in 10 months.

(Graphic: Fund flows into U.S. equities bonds and money market – tmsnrt.rs/3xuyluG)

Data released during the week showed U.S. manufacturing growth slowed for the second straight month in July, while, U.S. private payrolls increased less than expected.

Optimism over U.S. companies’ second-quarter earnings boosted stock prices during the week, however, lingering virus concerns capped the inflows.

U.S. equity funds received just $470 million, a 94% drop compared with the previous week.

(Graphic: Flows into U.S. equity sector funds – tmsnrt.rs/3AgMJc2)

(Graphic: Fund flows into U.S. growth and value funds – tmsnrt.rs/3isnNbu)

Overall, earnings at S&P 500 firms are estimated to have climbed about 90% in the second quarter compared with forecasts of 65.4% at the start of July, according to IBES data from Refinitiv.

Among sectors, tech funds received a net $1.3 billion, about 37% more compared with the previous week.

Financial sector funds, however, witnessed outflows worth $673 million.

(Graphic: Flows into U.S. bond funds – tmsnrt.rs/3yp275s)

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