Global equity funds suffered substantial outflows during the seven days to June 21 amid concerns over borrowing costs staying higher for longer as the European Central Bank raised interest rates and the Federal Reserve signalled more hikes.

Investors withdrew a net $15.12 billion from global equity funds which had seen net inflows of $16.04 billion a week earlier.

Fed Chair Jerome Powell struck a hawkish tone in his testimony before the U.S. House Financial Services Committee on Wednesday, noting that a majority of policymakers expected two more quarter-point rate hikes by year end.

The Bank of England surprised investors by raising interest rates by half a percentage point on Thursday, saying it would take more time for inflationary pressures to subside.

The U.S. and European equity funds witnessed outflows of $16.47 billion and $1.81 billion, respectively, while investors pumped about $2.6 billion into Asian funds.

Healthcare and industrial sectors saw $1.14 billion and $174 million worth of net selling, respectively. Financials attracted about $710 million worth of inflows.

Meanwhile, global bond funds extended their inflows streak to a 14th straight week, with about $4.07 billion flowing in.

Global government and corporate bond funds attracted about $1.9 billion each. Meanwhile high yield, loan participation and convertible funds suffered outflows of about $400 million each.

Meanwhile, investors withdrew a net $15.13 billion from money market funds, their second straight week of outflows.

Among commodity funds, investors withdrew $498 million from precious metal funds, their fourth successive week of net selling. Energy funds also saw $176 million in outflows.

Data for 24,028 emerging market funds showed that investors secured a net $714 million worth of bond funds in their third straight week of net buying. They also purchased $812 million of equity funds.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Vinay Dwivedi)