Global bond funds draw third weekly inflow on ebbing inflation fears

July 14 (Reuters) – Global bond funds posted their third weekly inflow in the week to July 12 thanks to receding fears over higher inflation levels and bets grew that the US Federal Reserve was near the end of its rate-hiking cycle.

Global bond funds received USD 8.5 billion worth of money during the week, with about half of the money flowing into safer government bond funds.

Among equity funds, European funds had the bulk of outflows amounting to USD 6.6 billion, while Asian and US funds received USD 1.9 billion and USD 120 million respectively in inflows.

The MSCI All Country World index jumped to a 15-month high on Wednesday, following the report showing US consumer prices rising modestly in June.

Among sector funds, tech, and consumer staples funds drew USD 1.4 billion and USD 287 million respectively.

On the other hand, global money market funds faced USD 29.56 billion worth of outflows, compared with about USD 55 billion in net purchases in the previous week.

Among commodity funds, investors disposed of USD 511 million worth of precious metal funds, marking a seventh successive week of withdrawal. Energy funds also had outflows, worth about USD 152 million.

Meanwhile, data for 24,119 emerging market funds showed equity funds obtained USD 854 million after a week of net outflows, while bond funds drew a second weekly inflow, amounting to USD 552 million.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Peter Graff)