Quotes from the news wire:
Money is taken out of play like this, particularly in stocks, during times of uncertainty, federal Reserve chairman Jerome Powell has pointed to the current uncertainty multiple times in the recent past with respect to the U.S.-China trade war, global growth concerns and the still tepid inflation data.
Not surprising to see the large net outflows from them as it aligns with market performance and the negative flows from equity funds, the high-yield results were the main reason that taxable bond mutual funds suffered a weekly net outflow this week of $263 million, which broke a streak of 17 straight weekly net inflows.
The flip in investor sentiment regarding high-yield funds can be seen in the group's fund-flows results, as they had net outflows of $20.7 billion in Q4 - second worst quarterly net outflow ever - and they have taken in $14.3 billion in net new money in Q1 - the second best quarterly net inflow ever.
It was the taxable bond funds group's seventh straight weekly net inflow, ultra-short obligation funds (USO) drove the overall positive net flows for the group as they took in $1.47 billion. This is the continuation of a long-term trend as USO funds have had net inflows in 50 of the last 51 weeks for a total intake of over $69 billion.
This was the largest positive weekly net inflow of the year coming in at over twice that of the $16.6 billion net inflow for the fund-flows week ended January 27, 2016, of note, equity funds broke a 10-week streak of net outflows by taking in $7.8 billion in net new money and municipal bond funds recorded their 41st straight week of inflows as they grew their coffers by $1.2 billion.