Fri Sep 20 13:37:28 UTC 2024: ## Bond Funds Surge on Fed Rate Cut Expectations, Equity Funds See Modest Outflows

**New York, Sept. 20** – U.S. bond funds experienced their 16th consecutive week of inflows, totaling $6.76 billion, driven by anticipation of a substantial interest rate cut from the Federal Reserve. This represents the highest weekly inflow in three weeks.

The Fed delivered on these expectations on Wednesday, reducing rates by half a percentage point, marking the beginning of a gradual easing of monetary policy. This decision was spurred by growing concerns over the strength of the job market.

U.S. general domestic taxable fixed income funds saw a significant $2.19 billion inflow, their highest weekly total since July 24. Investors also poured money into short-to-intermediate investment-grade funds ($1.78 billion) and municipal debt funds ($718 million).

Meanwhile, U.S. equity funds saw a four-week low in net sales, reaching $1.37 billion. Small-cap funds registered a $467 million inflow after two weeks of selling, while large-cap, mid-cap, and multi-cap funds continued to face net outflows of approximately $602 million, $565 million, and $271 million, respectively. Sector funds remained out of favor for the fourth consecutive week, witnessing $557 million in net sales. Investors pulled out funds from financial and tech sectors, totaling $983 million and $389 million, respectively, but favored real-estate funds, which saw a net inflow of $561 million.

U.S. money market funds experienced their first weekly outflow in seven weeks, totaling $29.19 billion.

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