U.S. money market funds saw big inflows in the week to May 24 as investors favored safer bets ahead of a deadline for politicians to agree an increase in the country's debt ceiling.

According to Refinitiv Lipper data, U.S. money market funds received a net $39.9 billion of inflows, the biggest week of net buying in four weeks.

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, riskier equity funds saw outflows for a ninth straight week, worth $1.79 billion.

Investors sold $1.06 billion from U.S. equity value funds and $703 million from growth funds, respectively.

Meanwhile, sectoral equity funds remained in demand as they drew a net $335 million worth of inflows. Tech and consumer discretionary sectors received a net $420 million and $289 million, respectively.

On the other hand, U.S. bond funds attracted a fourth week of inflows, worth about $4.22 billion.

Government bond funds received $2.43 billion in a fifth straight week of net buying.

U.S. corporate and high yield funds also drew $1.72 billion and $677 million of inflows, respectively, but inflation protected funds suffered a sixth weekly outflow of $565 million.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Mark Potter)