(Reuters) – U.S. bond funds attracted inflows for a 16th straight week in the week ended Sept. 18, on expectations that the Federal Reserve would deliver an outsized rate cut in its meeting during the week.
According to LSEG data, investors bought a net $6.76 billion worth of US bond funds during the week, registering the highest weekly inflow in three weeks.
The Federal Reserve reduced interest rates by half a percentage point on Wednesday, initiating what is anticipated to be a gradual easing of monetary policy with an unusually large reduction in borrowing costs, prompted by increasing concerns about the health of the job market.
U.S. general domestic taxable fixed income funds attracted a robust $2.19 billion in inflows, the highest weekly total since July 24. Investors also heavily invested in short-to-intermediate investment-grade funds and municipal debt funds, with significant inflows of $1.78 billion and $718 million,…
