marctomarket.com / by Marc Chandler / July 10, 2017
According to EPFR, investors were net sellers of European equity funds in the week ending July 5 for the first time since March. This appears to have ended the longest buying streak in a couple of years.
Rising yields and valuations were thought to have injected a note of caution as well as some re-weighting at the start of Q2. European equity funds, according to EPFR have taken in $22 bln this year after experiencing outflows of nearly $100 bln last year.
European bond funds, however, continued to draw savings. The $2 mln inflows into European bonds funds pales in comparison to the $2.2 bln inflows recorded the previous week but does extend the buying spree into a 10th week. US bond funds also continued to attract flows. The $.24 bln inflow was the 16th consecutive week that AUM grew.
Japan reported its May portfolio flows alongside its balance of payments report earlier today. Japanese investors bought JPY1.32 trillion of US Treasuries, the most in nine months. They also bought JPY906.4 bln of German and French bonds as well. It was the first time in three months that Japanese investors bought Bunds (JPY315 bln). They bought JPY591 bln of French bonds, the most since 2015. For the 13th consecutive month, Japanese investors bought Australian bonds (JPY94.4 bln).