Global equity funds draw inflows for fourth week as Treasury yields ease
SPY•Global equity funds attracted $20.01 billion in the week through October 14, their fourth consecutive week of inflows, as Treasury yields eased. Investors pulled $4.75 billion from technology funds, while global bond funds drew $7.79 billion.
1. Equity fund flows
Investors bought a net $20.01 billion of global equity funds in the week through October 14, up from $1.59 billion the previous week. US equity funds attracted about $13 billion, reversing $5.1 billion in net sales the week before; Asian and European equity funds drew $2.93 billion and $1.5 billion, respectively.
2. Sector and bond demand
Sectoral equity funds saw $6.14 billion in net outflows, including $4.75 billion from technology funds, $1.86 billion from industrials and $1.43 billion from financials. Global bond funds attracted $7.79 billion, extending their inflow streak to four weeks, while money market funds had $46.73 billion in outflows.
3. Yields and earnings
The US 10-year Treasury yield, which reached 5.3645% last week, had since eased by roughly 26 basis points as investors expected the Federal Reserve may hold rates steady at its upcoming meeting. Global large- and mid-cap companies are expected to report 25.14% year-on-year earnings growth for the latest quarter, while technology companies are expected to post 46.9% growth.
