June 7 Reuters Global investors returned to equity funds in the seven days to June 5, powered by optimism that major central banks would cut interest rates as inflation moderated, while a drop in U.S. bond yields also lifted risk sentiment.

Investors pumped in a net 8.9 billion into global equity funds during the week, in contrast to about 4.4 billion worth of net withdrawals a week ago, data from LSEG showed.

This week, the European Central Bank and Bank of Canada cut their interest rates, boosting global stocks to record highs.

Investors are now waiting for the U.S. Federal Reserve39;s meeting scheduled for next week for insights about the potential rate cuts this year.

Boosting investor sentiment, Treasury yields slid. The yield on benchmark U.S. 10year notes hit a twomonth low of 4.275 on Wednesday.

European equity funds saw 3.2 billion worth of net buying, marking the sixth weekly inflow in a row. Asian and U.S. equity funds, meanwhile, witnessed about 3.09 billion and 2.29 billion worth of net purchases.

Among sectoral funds, utilities received a robust 996 million, the biggest since May 2022. Metals mining, and financials also added 459 million and 424 million, respectively.

Simultaneously, global bond funds drew roughly 14.56 billion, the largest amount in a week since March 5.

Global shortterm bond funds led the way, gaining about 2.09 billion worth of inflows in a fifth straight week of net buying. Global government, and highyield bond funds, meanwhile,…