Global bond funds saw $18.97bn in outflows in the week ending May 18, as per Lipper data. This marked the biggest weekly outflows since February 16. The massive outflows come on the back of tight global central banking policy with inflation hitting new highs and some analysts predicting a recession in the near future. US and European bond funds saw outflows of $8.4bn and $8.1bn respectively, while Asian funds saw a minor net inflow of $60mn. The data also shows that weekly net selling in global short and medium-term bond funds occurred for a nineteenth consecutive week amounting to $4.6bn. Government bond funds however gained $5.5bn in inflows, a third straight week of net buying. As per Reuters, an analysis of 24,262 EM funds showed net selling in both equity and bond funds for a sixth straight week to $1.4bn and $4.4bn respectively.
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