June 10 Reuters U.S. bond funds witnessed massive outflows in the week to June 8 after a weekly inflow, as a betterthanestimated payrolls report made the case for a faster pace of interest rate hikes.

According to Refinitiv Lipper data, investors withdrew 7.61 billion out of U.S. bond funds after the purchases of 7.09 billion in the previous week, which was the only weekly inflow since Jan 5.

U.S. benchmark 10year yield surged by over 10 basis points during the reported week amid solid U.S. job additions. It hit more than a 312 year high of 2.862 on Friday, ahead of a report on consumer prices.

Investors expect the Federal Reserve to raise interest rates by 50 basis points next week as inflation data, due later in the day, is expected to show steep rise of 0.7 in May. 

U.S. investors offloaded taxable bond funds worth 5.21 billion and municipal funds worth 2.4 billion, which were the biggest weekly outflow in three weeks.

U.S. shortintermediate investmentgrade funds, and shortintermediate government and treasury funds witnessed outflows of 3.63 billion and 2.77 billion, respectively, but investors purchased highyield funds worth 1.17 billion.

Meanwhile, money market funds gained a net 24.79 billion in purchases, after outflows of 9.3 billion a week ago, underscoring riskoff sentiments.

U.S. equity funds witnessed net selling worth 1.82 billion after two successive weeks of inflows.

U.S. growth and value funds saw outflows totalling 728 million and 869 million,…