US equity funds draw renewed inflows as Treasury yields ease

Oct 16 (Reuters) - US equity ‌funds attracted inflows ​in ​the week to October 14, following outflows the previous week, as Treasury yields eased from recent peaks and ‌investors looked ahead to a strong earnings season, although the ⁠technology sector faced outflows amid concerns over rising debt levels.

Investors purchased a net $13.01 ‌billion in US equity ‌funds during the week, reversing net outflows of $5.1 billion in the previous week, according to LSEG Lipper data.

The technology sector, meanwhile, recorded ​net outflows of $5.21 billion, its largest weekly outflow since June 24.

The US 10-year Treasury yield fell about 26 basis points ⁠from the 24½-year high of 5.3645% reached the previous week, amid expectations that the Federal ​Reserve may hold interest rates steady at its meeting this month.

Investors also drew confidence from strong corporate earnings ​expectations in the ongoing earnings season. LSEG ‌data, based on analyst estimates for 2,076 US large- and mid-cap companies, forecasts year-on-year profit growth of ⁠29.99% for the most recent quarter, with the technology sector expected to post growth of 57.64%.

US large-cap equity funds attracted $16.55 billion, reversing roughly $14.08 billion ⁠in outflows the previous week. Investors also bought $2.12 billion in multi-cap funds and $541 ​million in small-cap funds, while selling a net $651 million in mid-cap funds.

US bond funds remained popular for a 26th consecutive week, attracting net inflows of $6.45 billion.

General ‌domestic taxable fixed-income funds recorded $1.91 billion in net inflows, marking a fourth straight week of net purchases. ‌Investors also added $1.61 billion to municipal debt funds and $1.12 billion to ⁠short- and intermediate-term government and ‌Treasury funds.

Meanwhile, investors withdrew $45.93 ​billion from money market funds, following $68.49 billion in net purchases the previous week.

(Reporting by Gaurav Dogra; Editing by ‌Chizu Nomiyama )

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