Government Bond Funds and Government Bonds

equity funds: After pulling over $25 billion out of equity funds in January—the worst January performance since 2009 for stock indexes—investors sold another $10 billion the week ending Feb. 3, according to a Bank of America report released Friday, according to Market Watch. By comparison, government bond funds saw inflows of $1.7 billion in the first week of February, following a $1.95bn inflow in the last week of January. Investors have been eschewing equities in favor of the perceived safety of bonds since the beginning of the year, as stock markets have taken a beating and oil prices have cratered. Investors bought the most government bonds in the third week of January, when government bond funds saw their largest inflow in 12 months amid a rout in equities and concerns over economic slowdown. Inflows to all fixed-income funds, including government, municipal and corporate bonds, totaled $1.7 billion in the week ended Feb. 3 after an inflow of $3.7 billion in the previous week. Bank of America analysts referred to that buying pattern as recessionary inflows, indicating that investors are bracing for an economic recession. (news.financializer.com). As reported in the news.