May 26 (Reuters) – U.S. money market funds posted big inflows in the week to May 24 as investors favored safer bets ahead of a deadline for politicians to agree on raising the nation’s debt ceiling.
US money market funds saw net inflows of $39.9 billion, the biggest week of net purchases in four weeks, according to data from Refinitiv Lipper.
US President Joe Biden and top congressional Republican Kevin McCarthy are nearing a deal to raise the government’s $31.4 trillion debt ceiling over two years, a US official told Reuters, but time is running out.
The US Treasury estimates it will run out of funds within a week, and any deal legislation would eliminate that.
Meanwhile, riskier equity funds posted outflows for a ninth consecutive week, worth $1.79 billion.
Investors sold $1.06 billion from US equity value funds and $703 million from growth funds, respectively.
Meanwhile, sector equity funds maintained demand as they generated net inflows of $335 million. The technical and consumer discretionary segments netted $420 million and $289 million, respectively.
On the other hand, US bond funds recorded inflows for the fourth week worth about $4.22 billion.
Government bond funds received $2.43 billion in net buying in the fifth week.
US corporate and high-yield funds also saw inflows of $1.72 billion and $677 million, respectively, but inflation-protected funds had their sixth weekly outflow of $565 million.
Reporting by Gaurav Dogra and Pathuraja Murugabopathy in Bengaluru Editing by Mark Potter
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