Global investors took shelter in safer money market and bond funds in the week to Aug. 4, as the rapidly spreading Delta variant of COVID-19 dampened hopes for a faster recovery from the pandemic, with some economic data already showing signs of a slowdown.
Data from Lipper showed global money market funds attracted inflows of $36.68 billion, the most in 10 weeks.
Global bond funds received $14.6 billion in the week, twice the inflows in the previous week.
Bond prices rallied across the world, with the US 10-year Treasury yield touching a six-month low this week.
Data released during the week showed US manufacturing growth slowed for the second straight month in July, while, US private payrolls increased less than expected.
European bond funds attracted $7.4 billion, while US bond funds received $6.7 billion.
Asian bond funds also attracted small inflows.
On the other hand, global equity funds received $9.04 billion, helped by some optimism over strong earnings posted by a majority of US firms in the second quarter.
However, virus concerns capped equity inflows, as the purchases were 47 percent lower compared with the previous week.
Chinese equity funds saw inflows for the first time in seven weeks, as concerns over China’s efforts to impose tighter regulations on its publicly traded companies abated slightly.
Across sectors, tech funds secured a net $1.46 billion, while consumer discretionary and health care funds lured over $500 million each.
