LONDON, May 26 (Reuters) - Investors shunned U.S. equities and high yield bonds in the latest week in favour of European stocks and investment grade corporate bonds, fund flow data from Bank of America Merrill Lynch showed on Friday.

The $3.3 billion redemption from U.S. equity funds followed almost $9 billion of outflows the previous week, as political turmoil in Washington and underwhelming U.S. economic data unnerved investors.

U.S. equity funds have now posted eight weekly outflows of the last 10 as the conviction grows that Wall Street is due a correction. Last week's slip didn't last long, and the S&P 500 and Nasdaq rebounded to hit fresh record highs this week.

European equity funds attracted $400 million inflows, a fairly small amount but the ninth weekly inflow in a row. Globally, equity funds posted a net inflow of $1.6 billion in the week to Wednesday, BAML said.

Investment grade bond funds pulled in $6.7 billion, marking the 22nd straight week of inflows and bringing the total inflow over the last five years up to $541 billion.

Investors shunned high yield bonds, however, pulling $100 million from these funds, said BAML, who also uses data from fund research house EPFR Global.

Overall, bond funds attracted $7.8 billion of inflows in the week to Wednesday, the 21st inflow out of the last 22 weeks.

Emerging market funds performed well, with bonds pulling in $1.1 billion and stocks $1.0 billion. That marked the 17th and 10th consecutive weekly inflows, respectively, BAML said.

This was despite a broad sell off across emerging markets on Thursday last week following allegations that Brazil's President Michel Temer condoned bribes to silence a key witness in a corruption probe.

(Editing by Elaine Hardcastle) ((jamie.mcgeever@thomsonreuters.com;)(+44 207 542 8510;)(Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net;)(Twitter: @ReutersJamie))