U.S. bond funds recorded net inflows in the week through April 23 for the first time in six weeks, as a selloff in U.S. bond markets eased and investors grew hopeful about a potential de-escalation in the trade war between the U.S. and China.
According to LSEG Lipper data, investors purchased U.S. bond funds of a net $206 million during the week, that halted their five-week selling streak.
The Trump administration is considering lowering tariffs on Chinese imports pending talks with Beijing, a source said on Wednesday, as the U.S. noted this week that China is weighing exemptions for some American goods from its 125% tariffs.
U.S. mortgage funds attracted a massive $4.84 billion, the largest amount for a week since at least October 2017.
U.S. short-to-intermediate government and treasury funds also witnessed a net $1.59 billion in inflows, while general domestic taxable fixed income funds saw net sales of approximately $2.61 billion.
At the same time, weekly outflows from U.S. equity funds eased to a net $1.35 billion during the week, from about $10.44 billion in the previous week.
Sectoral equity funds remained out of favor for an eighth successive week as investors withdrew a net $2.13 billion from these funds.
The financial, tech and consumer staples sectors saw major outflows at $1.33 billion, $499 million and $494 million, respectively.
Investors, meanwhile, bought $24.43 billion worth of U.S. money market funds after two weeks of selling.
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