May 28 (Reuters) - Investment flows into U.S. money market funds surged to the highest in over a year in the week to May 26, on caution as investors awaited U.S. data expected to offer clues on inflation.
Refinitiv Lipper data showed U.S. money market funds drew in a net $66.6 billion in the week, the biggest amount since April 2020, with investors concerned about a rise in inflation levels and the impact on the direction of U.S. monetary policy.
Meanwhile, U.S. equity funds attracted a net $5.06 billion, as stocks rallied somewhat after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance.
Among equities, investors purchased value funds worth $2.4 billion, while growth funds faced outflows worth $859 million.
U.S. bond funds saw net purchases of $4.82 billion, the highest in three weeks.
Investors bought $2.35 billion in U.S. taxable funds and $1.31 billion in municipal bond funds.
U.S. inflation-protection funds also had an inflow of $641 million, which was their fourth successive inflow.
Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Hugh Lawson