(Reuters) – U.S. money market funds drew massive inflows in the week to April 26 as investors preferred safer assets amid nagging worries about the regional banking sector and prospects of an imminent recession.
Refinitiv Lipper data showed investors purchased a net $47.72 billion worth of U.S. money market funds in their biggest weekly net buying since March 29.
GRAPHIC: Fund flows: U.S. domiciled equities, bonds and money market
funds https://www.reuters.com/graphics/USA-FLOWS/USA-FLOWS/lgvdkxleapo/chart.png
Investors were worried that the U.S. regional banking crisis may not be over yet as First Republic Bank reported a more than $100 billion plunge in deposits in the first quarter.
Meanwhile, U.S. equity funds faced a fifth straight week of outflows, with investors exiting a net $3.75 billion worth of funds.
By sector, tech and consumer discretionary witnessed net selling of $842 million and $335 million, respectively, although investors poured $467 million into financials in a third successive week of net buying.
GRAPHIC: Fund flows: U.S. equity sector funds https://www.reuters.com/graphics/USA-FUNDS/USA-FUNDS/gkplwjxzyvb/chart.png
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Investors also pulled out $1.62 billion from U.S. bond funds in a second straight week of net selling.
U.S. general domestic taxable fixed income funds, inflation protected funds and loan participation funds had $2.18 billion, $892 million and $797 million worth of net selling, respectively.
Still, government bond finds secured $2.22 billion worth of inflows compared with net selling of $2.14 billion in the previous week.
GRAPHIC: Fund flows: U.S. bond funds https://www.reuters.com/graphics/USA-FUNDS/USA-FUNDS/akpeqnalapr/chart.png
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; editing by Jonathan Oatis)