LONDON, Might 19 (Reuters) – Buyers pumped $25.1 billion into money within the week to Wednesday, however the move into money funds has slowed not too long ago, reflecting a larger diploma of investor confidence, in keeping with a report from BofA World Analysis on Friday.
A complete of $151 billion went into cash market funds over the past 4 weeks versus $404 billion within the 4 weeks after Silicon Valley Financial institution collapsed in March and the banking sector was engulfed in turmoil, the BofA report confirmed.
In the meantime, buyers purchased $5.6 billion of bonds and pulled $7.7 billion from fairness funds within the week to Might 17.
The report additionally confirmed U.S. Treasuries clocking up 14 straight weeks of inflows, with buyers shopping for $4.3 billion within the week to Might 17.
In addition they confirmed a desire for funding grade bonds – which have seen inflows for seven weeks and a weekly influx of $4.9 billion – over excessive yield bonds, from which buyers pulled $2 billion final week.
The BofA analysts stated a 60/40 portfolio, which generally allocates 60% of property into shares and 40% into bonds, has recorded a 28% annualized return in 2023, turning issues round after a “disastrous” 2022.
A complete of $1.1 billion went into tech shares, marking a fifth week of inflows, as buyers selected progress names over worth.
Buyers took $700 million out of monetary funds, whereas actual property funding trusts noticed their largest outflows since November 2022, totaling $600 million.
Trying ahead to the subsequent 12 months, BofA stated the “largest ache commerce” shall be Federal Reserve rates of interest at 6% fairly than 3%.
BofA stated its bull and bear indicator – a measure of market sentiment by which a better studying is extra bullish – jumped from 3.4 to three.5, its highest stage since March 14.
Reporting by Lucy Raitano; Modifying by Amanda Cooper
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