Investors pile into cash and TIPS in week to Wednesday – BofA
A person walks previous the New York Inventory Change on the nook of Wall and Broad streets in New York Metropolis, New York, U.S., March 13, 2020. REUTERS/Lucas Jackson/File Picture
LONDON, Oct 8 (Reuters) – Buyers ploughed $14.9 billion into money within the week to Wednesday and snapped up $1.8 billion of inflation protected U.S. Treasuries as markets suffered a serious dump, a round-up by BofA on movement quantity primarily based on EPFR knowledge confirmed on Friday.
Mounted earnings markets attracted the smallest weekly influx since March at $3.9 billion with funding grade securities attracting simply $2.1 billion and each high-yield and rising market bonds struggling outflow, the BofA report famous.
Equities sucked in $13 billion with Japan shares having fun with one of the best inflows since April 2019 at $4.3 billion and U.S. shares gaining $71 million, whereas their European friends suffered a 1.3 billion outflow.
“Late-60s/70s “stagflation” winners have been actual belongings, actual property, commodities, volatility, money, EM, all of which held their very own vs inflation; losers have been bonds, credit score, equities, tech, all of which finally struggled,” strategist Michael Hartnett mentioned within the word to purchasers.
BofA additionally famous that central banks across the globe had delivered 999 rate of interest cuts for the reason that collapse of Lehman Brothers in 2008 sparked the worldwide monetary disaster.
Reporting by Karin Strohecker; Enhancing by Julien Ponthus
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