By Reuters

(Reuters) - U.S. equity funds recorded a second weekly outflow in nine weeks in the week to May ​20 as investors locked in profits from ‌a recent rally on caution over rising inflation and a surge in long-term borrowing costs.

According to LSEG Lipper data, investors ​divested a net $12.05 billion of U.S. equity funds ​in their largest weekly net sales since $24.52 ⁠billion of weekly outflows in mid-March.

Weekly flows into US equity, bond and money market funds in $ million

The 30-year U.S. Treasury ​yield climbed to 5.201% on Wednesday, the level last ​seen in 2007, fanning worries over their potential impact on the growth sectors and corporate margins.

By segment, investors divested large-cap, ​mid-cap and small-cap funds of a net $7.18 billion, $1.86 ​billion and $555 million, respectively.

The technology sector funds witnessed a seventh successive ‌weekly ⁠inflow to the tune of $2.57 billion. Industrial and financial sectors, however, had weekly outflows of $1.45 billion and $1.32 billion, respectively.

Weekly flows into US equity sector funds in $ million

U.S. bond funds attracted $12.5 billion, in line with $12.83 ​billion of net ​purchases the ⁠prior week.

The short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds, and municipal bond ​funds saw a noticeable $4.63 billion, $4.43 billion and $1.53 ​billion ⁠of weekly net purchases.

Weekly flows into US bond funds in $ million

Investors, meanwhile, bought a net $12.04 billion worth of U.S. money market funds as they reversed ⁠the ​prior week's $4.19 billion weekly outflow.

Reporting by Gaurav Dogra

This week on Reuters

• Tema plans new ETF on prediction market themes

• How investors buy gold and what fuels the market

• Global banks raise yuan forecasts, fuelled by China's export strength and stable US ties

• US software stocks rebound, seeking to loosen AI's grip