U.S. bond funds attract 23rd straight week of inflows -ICI

NEW YORK, Aug 1 (Reuters) - U.S. fund investors showed continued demand for bond funds in the latest week, extending a streak of inflows that dates back to mid-February, Investment Company Institute data showed on Wednesday. Investors also increased deposits in domestic equity and commodity funds, but fixed income continued to dominate in an environment of uncertainty over tensions between the U.S. and its trading partners, according to ICI data collected over the seven-day period that ended July 25. Bond funds attracted $4.4 billion, of which $613 million went to tax-free municipal bonds. Domestic equity exchange-traded funds attracted $3.5 billion, the third straight week of inflows, during an earnings season in which the majority of U.S. companies have beat expectations. ETF investors deposited $1.3 billion in global equity funds. Within long-term equity mutual funds, which have seen net withdrawals since early April, investors added $681 million to domestic small-cap equities. The category, which has benefited from tax cuts and is seen as less vulnerable to tariffs, has taken in cash for nine of the past 10 weeks. The following table shows estimated ICI flows for mutual funds and ETFs (all figures in millions of dollars):

7/25 7/18 7/11 7/3 6/27/2018 Equity 419 1,492 -3,155 -10,592 -17,948 Domestic 523 1,297 -1,546 -11,381 -12,535 World -105 195 -1,609 789 -5,413 Hybrid -1,165 -1,829 -1,048 -2,552 -1,134 Bond 4,439 8,660 7,445 4,591 2,980 Taxable 3,826 6,894 6,416 4,235 2,455 Municipal 613 1,765 1,028 356 525 Commodity 164 -308 101 -1,027 -612 Total 3,856 8,014 3,343 -9,580 -16,714

(Reporting by James Thorne; Editing by Bernadette Baum)