US cash market funds see massive inflows amid debt ceiling warning

(Reuters) – U.S. cash market funds noticed massive inflows within the week to Could 24 as buyers favored safer bets forward of a deadline for politicians to agree a rise within the nation’s debt ceiling.

Based on Refinitiv Lipper information, U.S. cash market funds obtained a web $39.9 billion of inflows, the largest week of web shopping for in 4 weeks.

U.S. President Joe Biden and prime congressional Republican Kevin McCarthy are closing in on a deal to boost the federal government’s $31.4 trillion debt ceiling for 2 years, a U.S. official instructed Reuters, however time is operating quick.

The U.S. Treasury estimates it’ll run out of funds inside per week, and legislating any deal will take that right down to the wire.

In the meantime, riskier fairness funds noticed outflows for a ninth straight week, value $1.79 billion.

Traders bought $1.06 billion from U.S. fairness worth funds and $703 million from development funds, respectively.

In the meantime, sectoral fairness funds remained in demand as they drew a web $335 million value of inflows. Tech and client discretionary sectors obtained a web $420 million and $289 million, respectively.

However, U.S. bond funds attracted a fourth week of inflows, value about $4.22 billion.

Authorities bond funds obtained $2.43 billion in a fifth straight week of web shopping for.

U.S. company and excessive yield funds additionally drew $1.72 billion and $677 million of inflows, respectively, however inflation protected funds suffered a sixth weekly outflow of $565 million.