U.S. equity funds record outflows on caution over higher yields

U.S. equity funds recorded a second weekly outflow in nine weeks in the week to May 20 as investors locked in profits from a recent rally on caution over rising inflation and a surge in long-term borrowing costs.

According to LSEG Lipper data, investors divested a net $12.05 billion of U.S. equity funds in their largest weekly net sales since $24.52 billion of weekly outflows in mid-March.

The 30-year U.S. Treasury yield climbed to 5.201% on Wednesday, the level last seen in 2007, fanning worries over their potential impact on the growth sectors and corporate margins.

By segment, investors divested large-cap, mid-cap and small-cap funds of a net $7.18 billion, $1.86 billion and $555 million, respectively.

The technology sector funds witnessed a seventh successive weekly inflow to the tune of $2.57 billion. Industrial and financial sectors, however, had weekly outflows of $1.45 billion and $1.32 billion, respectively.

U.S. bond funds attracted $12.5 billion, in line with $12.83 billion of net purchases the prior week.

The short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds, and municipal bond funds saw a noticeable $4.63 billion, $4.43 billion and $1.53 billion of weekly net purchases.

Investors, meanwhile, bought a net $12.04 billion worth of U.S. money market funds as they reversed the prior week's $4.19 billion weekly outflow.

(Reporting by Gaurav Dogra)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 22, 2026 at 4:20 AM.