July 28 (Reuters) – US investors turned to money market funds ahead of the Federal Reserve’s policy decision, uncertain about the future path of the central bank’s monetary policy amid solid economic data.
Investors placed a net USD 24.62 billion in US money market funds in the seven days to July 26, their first weekly net purchase since July 5, data from Refinitiv Lipper showed.
The Fed on Wednesday delivered its eleventh rate hike since March 2022, raising its benchmark policy rate by 25 basis points to a 5.25%-5.50% range. The accompanying statement left the door open for another potential increase.
Meanwhile, US equity funds gained a net USD 2.14 billion in inflows during the week, after recording a weekly outflow of USD 3.06 billion a week ago.
Investors purchased US large-, mid-, and small-cap funds of USD 2.48 billion, USD 612 million, and USD 675 million, respectively, while withdrawing about USD 995 million from multi-cap funds.
By sector, tech funds saw their first weekly outflow in five weeks, amounting to a net USD 1.96 billion. Meanwhile, metals and mining, and financial sector funds received about USD 600 million each in inflows.
Investors purchased US bond funds for the fourth successive week, recording USD 2.56 billion in net buying.
US short/intermediate government and treasury, and short/intermediate investment-grade funds received USD 2.04 billion and USD 595 million, respectively. Inflation-protected funds drew USD 737 million, their first weekly inflow in 15 weeks.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathyin Bengaluru; Editing by Shilpi Majumdar)
This article originally appeared on reuters.com