Tags: equity | funds | outflows | debt | bonds | tax | bill

US Equity Funds Face Outflows on Debt Concerns

US Equity Funds Face Outflows on Debt Concerns
(Dreamstime)

Friday, 23 May 2025 01:08 PM EDT

U.S. equity funds saw huge outflows in the week ended May 21, as Treasury yields surged on fears President Donald Trump’s proposed tax-cut bill could add trillions to U.S. debt if passed by Congress.

According to LSEG Lipper data, investors withdrew a net $11 billion from U.S. equity funds, reversing $13.6 billion in inflows the previous week.

The 30-year Treasury yield climbed to a 19-month high on Thursday, coming within a few basis points of its highest level since 2007, after the House of Representatives passed a tax-and-spending package that intensified debt concerns.

Meanwhile, U.S. bond fund inflows fell to $7.6 billion, down 24% from the prior week, though some investors continued to buy, drawn by attractive yield levels. U.S. government bond funds and high-yield bond funds received $2.8 billion and $1.1 billion, respectively.

U.S. money market funds, meanwhile, attracted $20.6 billion in net inflows, rebounding from $10.5 billion in outflows the previous week.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
U.S. equity funds saw huge outflows in the week ended May 21, as Treasury yields surged on fears President Donald Trump's proposed tax-cut bill could add trillions to U.S. debt if passed by Congress.
equity, funds, outflows, debt, bonds, tax, bill
154
2025-08-23
Friday, 23 May 2025 01:08 PM
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