US money market funds saw significant demand before US elections

(Reuters) – U.S. investors moved large amounts of money to the safety of money market funds in the week to Nov. 6 as they cautiously awaited the U.S. presidential election outcome and the Federal Reserve’s policy decision.

According to LSEG data, investors acquired U.S. money market funds of a net $78.68 billion during the week, registering their largest weekly net purchase since Sept. 25.

U.S. equity funds also saw about $3.96 billion worth net purchases during the week following two weeks of outflows in a row, thanks to a robust $7.27 billion worth of net inflows in the large-cap segment during the week.

U.S. mid-cap funds also witnessed $299 million worth of net purchases, but the multi-cap and small-cap segments experienced net outflows of $2.47 billion and $53 million, respectively.

Investors pumped a net $1.01 billion into the industrial sector in their largest weekly net purchase since July 17. Conversely, the financials and consumer staples sectors saw a net $420 million and $354 million worth of sales.

U.S. bond funds lured inflows for the 23rd week in a row, with investors securing a substantial $8.05 billion worth of funds on a net basis.

The short-to-intermediate investment-grade U.S. funds witnessed a sharp $3.1 billion worth of net purchases, the eighth weekly inflow in a row. General domestic taxable fixed income, and municipal debt funds also received a notable $1.92 billion and $1.26 billion, respectively.