According to Refinitiv Lipper data, global money market funds received about $17.67 billion worth of inflows, the biggest amount in three weeks.
U.S. money market funds received $39.89 billion worth of inflows but investors sold European and Asian funds of $15.76 billion and about $30 million, respectively.
U.S. President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal to raise the government's $31.4 trillion debt ceiling for two years, a U.S. official told Reuters, but time is running short.
The U.S. Treasury estimates it will run out of funds within a week, and legislating any deal will take that down to the wire.
Meanwhile, global equity funds faced $4.14 billion worth of net selling, the sixth weekly outflow in a row.
Investors sold healthcare, industrial and energy sector funds of $414 million, $183 million and $174 million, respectively, but consumer discretionary drew $286 million worth of inflows.
Meanwhile, global bond funds saw $6.97 billion in net purchases during the week, the biggest weekly inflow since April 5.
Global government bond funds drew a fifth weekly inflow, worth $3.85 billion, while high-yield bond funds received $649 million worth of inflows, marking their first weekly net buying in four weeks.
Among commodity funds, investors purchased precious metal funds for a fifth straight week, worth $388 million, but exited $219 million worth of energy funds.
Data for 23,986 emerging market funds showed equity funds lost $831 billion in their first weekly net selling in four weeks, while bond funds had a fifth weekly outflow in a row, worth $472 million.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill)
