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The
report said this reflected the "end of inflation, end of war,
end of U.S. dollar bull" following data this week that showed
the U.S. economy is shifting into disinflation mode.
Weekly inflows to bonds totalled $12.1 billion, while stocks saw
inflows of $11.6 billion and investors pulled $17.6 billion out
of cash funds. Investors also shed $500 million worth of gold,
BofA said, citing figures from funds data provider EPFR.
U.S. data on Wednesday showed the world's largest economy
shifting to disinflation mode as consumer prices registered
their smallest annual increase in more than two years.
"Mission Accomplished" June CPI (headline 2% to 9% to 3%
roundtrip is now complete)," the BofA analysts wrote.
The U.S. benchmark S&P 500 index is up about 2.5% this week,
while Europe's STOXX 600 has risen 3% as markets react to the
prospect of an end to the rate hiking cycle.
U.S. Treasuries saw the largest inflows in 16 weeks, totalling
$8.7 billion, the BofA report found, while bank loans clocked
their third consecutive week of inflows, the longest streak
since May 2022.
In equities, tech attracted $2 billion in inflows, while $1.1
billion exited healthcare stocks, the largest outflow from this
sector in five months. Overall equities inflows have accelerated
over the last seven weeks, BofA said
The BofA bull & bear indicator, which measures market sentiment,
rose to 3.5 from 3.2 on stronger bond inflows and improvement in
credit market technicals.
(Reporting by Lucy Raitano; Editing by Amanda Cooper and Frances
Kerry)
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