As per ICI, Investment Company Institute, bond mutual funds saw their largest outflows amounting to $13.5 billion in the week ending on June 12, however the week leading upto Federal Reserve’s meeting saw much more caution. Bond outflows came up to -$2.8 billion on the week ending on June 19, according to data from Lipper FMI,. So far the amount investors have shed in June is already the second worst in near history, according to Goldman Sachs Group Inc (NYSE:GS). Even more importantly, last week’s $13.5 billion that exited bonds MFs was the worst weekly amount of outflows from fixed income assets since 2008. On the week ending on June 5, bond outflows came to -$10.86 billion.
From the looks of it June could become the worst month ever in history of fixed income assets, judging by the way investors are divesting off bonds and yields are spiking all over the place. Yields of 10-yr treasury notes spiked above 2.5 percent when markets opened today. Overall in Q2, bond flows have come up to +$2.4 billion, whereas for the year they are +71.5 billion.
Equity Mutual Fund Flows
Weekly inflows in equity mutual funds amounted to $1.5 billion till June 19, compared to -$1 billion that exited the same accounts last week. Inflows in both domestic equity funds and non-US equity funds came up close at $730 million and $749 million respectively. Whereas in the previous week ending on June 12 the picture was starkly different, domestic funds suffered -$2.3 billion in outflows whereas non-U.S. equity funds experienced $1.3 billion in inflows.
Quarter to date equity MFs have seen +$10.9 billion in flows, while YTD the figure is $77.7 billion.
The equity ETFs, excluding commodities, took $3.3 billion in inflows compared to losing $2.2 billion in flows the previous week. Commodity ETFs suffered $63 million in outflows whereas bond ETFs saw inflows of $57 million.