U.S. equity funds record first weekly outflow in three weeks

June 12 (Reuters) - Investors ‌pulled money ​out ​of U.S. equity funds in the week to June 10 on caution over a market ‌selloff and expectatons that the Federal Reserve would ⁠stay hawkish for longer, but still raised their exposure to ‌the technology sector.

According to ‌LSEG Lipper data, investors withdrew a net $12.57 billion out of U.S. equity funds in their first weekly ​net sales since May 20.

Rate-hike bets surged after last week's strong jobs report and Wednesday's hot ⁠inflation print, but October hike odds eased to 34.6% from 51% on ​renewed hopes of an Iran-U.S. peace deal, CME FedWatch showed.

U.S. large-cap funds saw $10.2 billion ​in net outflows in the ‌week, while mid-cap and small-cap funds recorded net sales of $1 billion and $2.22 billion, respectively.

The ⁠tech sector garnered a net $4.39 billion of weekly purchase as these funds remained popular for a tenth straight week. ⁠Investors also bought financial sector funds of a significant $655 million.

U.S. ​bond fund inflows stood at a three week high of $12.08 billion during the week.

Investors bought short-to-intermediate investment-grade funds of $5.09 billion, the ‌most in five weeks, while $4.14 billion of net purchases in short-to-intermediate government and ‌treasury funds was the largest in three weeks.

Money market ⁠funds witnessed a weekly ‌net sale of $16.34 ​billion after $111.36 billion of net purchases the prior week.

(Reporting by Gaurav Dogra; Editing by Tasim ‌Zahid)

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