Investors rush into bonds, equities: BofA

[June 12, 2020]   LONDON (Reuters) - Investors rushed back into investing in bond and equity funds, BofA's weekly fund flow statistics showed on Friday, as unprecedented stimulus measures led to global markets recouping most of COVID-19 related losses.

A man wears a protective mask as he walks past the New York Stock Exchange on the corner of Wall and Broad streets during the coronavirus outbreak in New York City, New York, U.S., March 13, 2020.

The investment bank noted that in the week ending on June 10, a "huge" 24.6 billion dollars went into bonds while $13.8 billion was channelled into equity funds, the largest amount in 9 weeks.

Municipal bonds saw record inflows while investment grade bond funds had their second biggest inflows ever during the week to June 10.

The BofA Bull & Bear indicator meanwhile also rose from 0.4 to 0.9 still near "extreme bearish" levels, triggering a contrarian buy signal.

Stock markets however tumbled on Thursday and bonds rallied after a grim economic outlook from the U.S. Federal Reserve and fears that a rise in new coronavirus cases could hurt a rush to open economies.

Below is a BofA's chart showing the rise inflows into Muni bonds:

Graphic: BofA, https://fingfx.thomsonreuters.com/
gfx/mkt/azgvobxmapd/Pasted%20image%201591951150888.png

(Julien Ponthus, editing by Thyagaraju Adinarayan)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.