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04 December 2010 ~ Comments Off

Bond funds see outflows as global concerns mount

SAN FRANCISCO (MarketWatch) — Bond funds saw fresh outflows for the week ended Wednesday as global concerns over a European debt crisis, uncertainty in U.S. fiscal policy and China’s efforts to keep property prices in check all weighed on investor demand, EPFR Global analysts said in a report Friday. Global bond funds posted outflows for the second time in three weeks; high-yield bond fund redemptions hit a 26-week high; and emerging-market bond funds saw their first two-week outflow streak since early April 2009. Outflows from emerging-market bond funds were most concentrated in funds with “hard currency mandates,” the analysts said.

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