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Investors ploughed $88.8 billion into cash, BofA said, citing
EPFR data, and sold $18.3 billion in bonds - the fastest weekly
rate in four months - with the majority of the sell-off
comprising investment-grade bonds.
BofA's "Bull & Bear" indicator, which seeks to track market
trends, remained unchanged at the "extreme bearish" level, with
this week's heavy bond outflows cited as the reason.
Investors also shed stocks, with equity funds recording weekly
outflows of $3.3 billion. U.S. equity outflows resumed, while
European equities concluded their 34th week of outflows - the
longest streak since 2016.
Emerging market equity funds saw inflows of $0.7 billion - the
fourth week in a row. Meanwhile investors sold $4.4 billion of
emerging market debt - the sixth weekly consecutive outflow.
Global stocks have risen this week, with the S&P 500 index up
about 4.4%. European shares were up around 0.2% on Friday ahead
of U.S. nonfarm payrolls data due later that could shed light on
how much further U.S. rates may rise.
Despite the recent uplift in stocks, BofA analysts remain
downbeat, and see risk assets going to new lows in October if
the Bank of Japan can't prevent new highs in dollar-yen and the
Bank of England can't head off new highs in UK gilt yields, they
wrote in a note.
(Reporting by Lucy Raitano; Editing by Mark Heinrich and Mark
Potter)
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