Last week, the US fixed income mutual funds attracted deposits from investors. The said deposits were rebounds from redemptions after much speculation that the Federal Reserve would scale backs its stimulus.

Investors put US$219 million into US mutual funds while pulling US$456 million from ETF bonds in the week that ended last July 10. The data was according to an email sent yesterday by research firm Lipper. The Denver based firm said that the investors deposited more than US$3 billion in bond mutual funds. They also deposited ETFs that were combined with said bonds during the previous week that ended July 3.

Last June, investors took around US$60 billion from US bond funds. This was the biggest listed monthly redemptions since 1961 as per records showed said Investment Company Institute (ICI). Last month, Pacific Investment Management Co had a record of US$14.5 billion in net redemptions.  The investment firm is the world's biggest active fixed income manager.

In the week that ended July 2, US taxable-bond mutual funds had a total of US$5.1 billion withdrawals according to ICI estimates.