U.S. money market funds eye large inflows as Ukraine struggle intensifies

© Reuters. FILE PHOTO: U.S. buck banknotes are displayed on this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) – U.S. traders have been dashing to make investments in money market funds as the struggle between Russia and Ukraine intensified, fuelling worries about inflation and financial divulge.

U.S. money market funds drew a salvage $43.21 billion in salvage shopping, the ideal weekly influx since Sept. 22.

Graphic: Fund flows: US equities bonds and money market funds: https://fingfx.thomsonreuters.com/gfx/mkt/gdvzybnawpw/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg

Riskier assets have been beneath force as traders disposed U.S. equity funds price $1.81 billion, marking a 2nd straight week of outflows.

U.S. divulge-oriented equity funds posted outflows of $4.23 billion, the ideal weekly salvage selling in five weeks, while value funds misplaced $439 million in salvage selling.

Graphic: Fund flows: US divulge and value funds: https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnzwyzpq/Fund%20flows%20US%20divulge%20and%20value%20funds.jpg

Amongst sector funds, financials had outflows of $2.37 billion, the ideal since on the least April 2020. Accurate estate suffered salvage selling price $1.15 billion, while tech and industrials lured $0.5 billion every, in salvage shopping.

Graphic: und flows: US equity sector funds: https://fingfx.thomsonreuters.com/gfx/mkt/zgpomzjlnpd/Fund%20flows%20US%20equity%20sector%20funds.jpg

U.S. bond funds saw salvage selling of $2.77 billion, which became once as a eighth consecutive week of outflows.

Merchants sold municipal bond funds of $1.83 billion, posting a 35% elevate in outflows, while taxable bond funds bought little inflows of about $1 million after facing outflows for seven consecutive weeks.

U.S. short/intermediate funding-grade funds confronted salvage selling for the eighth subsequent week, price $3.73 billion, even supposing inflation-protected funds pulled in $190 million in salvage shopping after facing outflows for five weeks in a row.

Graphic: Fund flows: US bond funds: https://fingfx.thomsonreuters.com/gfx/mkt/znvnenjobpl/Fund%20flows%20US%20bond%20funds.jpg

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