(Reuters) -U.S. equity funds saw huge outflows in the week ended May 21, as Treasury yields surged on fears President Donald Trump’s proposed tax-cut bill could add trillions to U.S. debt if passed by Congress.
According to LSEG Lipper data, investors withdrew a net $11 billion from U.S. equity funds, reversing $13.6 billion in inflows the previous week.
The 30-year Treasury yield climbed to a 19-month high on Thursday, coming within a few basis points of its highest level since 2007, after the House of Representatives passed a tax-and-spending package that intensified debt concerns.
Meanwhile, U.S. bond fund inflows fell to $7.6 billion, down 24% from the prior week, though some investors continued to buy, drawn by attractive yield levels. U.S. government bond funds and high-yield bond funds received $2.8 billion and $1.1 billion, respectively.
U.S. money market funds, meanwhile, attracted $20.6 billion in net inflows, rebounding from $10.5 billion in outflows the previous week.
(Reporting By Patturaja Murugaboopathy in Bengaluru; Editing by Chris Reese)
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