Flows to emerging markets bumped up by Fed -IIF
March 26 (Reuters) - Emerging markets saw portfolio inflows of $16 billion in March, the third consecutive month of inflows, with those markets seeing more capital after the March Federal Reserve meeting, the Institute of International Finance said on Thursday.
Equity flows were $10 billion for the month, with debt flows coming to $6 billion, a decline from the previous month as bond spreads rose in March.
Among the countries that publish daily data, which include Indonesia, India, Mexico and Brazil, there was $1.6 billion in inflows on the day after the March 18 Fed decision, when the Fed sounded more dovish than investors anticipated.
"Portfolio flows have responded strongly to shifts in the outlook for Fed tightening later this year," said Charles Collyns, IIF chief economist, in a statement. "After weak inflows in the first few weeks of March, emerging markets have benefited from dovish signals by the Fed following the March FOMC meeting." (Reporting By David Gaffen; Editing by Diane Craft)
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