MANAGEMENT-Investors Shun US Treasuries for Cash-BofA


MANAGEMENT-Investors flee US Treasuries for cash-BofA |  Photo credits: Trader Michael Milano works on the floor of the New York Stock Exchange, Friday, Feb.  22, 2019 Richard Drew / AP / SIPA

MANAGEMENT-Investors flee US Treasuries for cash-BofA | Photo credits: Trader Michael Milano works on the floor of the New York Stock Exchange, Friday, Feb. 22, 2019 Richard Drew / AP / SIPA

LONDON, Jan. 7 (Reuters) – Investors have moved away from US Treasuries overwhelmingly but have increased their flows to cash funds since the start of the year, as global markets brace for a downturn. rising interest rates, weekly flow data released by Bank of America shows.

“The rate shock in 2022 will follow the inflation shock of 2021 and financial conditions will tighten sharply,” said analysts at BofA and its director of investment strategy, Michael Hartnett.

The minutes of the Federal Reserve’s (Fed) meeting in December showed that its officials were paving the way for faster interest rate hikes.

The money markets in the United States and the United Kingdom include a rate hike by the Fed and the Bank of England as of March.

According to BofA calculations, global central banks have bought $ 26 billion (23 billion euros) worth of assets every day in the markets since the COVID-19 pandemic, pushing up the capitalization of the global market for shares of $ 133 billion a day.

Equity funds attracted a record inflow of $ 949 billion in capital in 2021, more than the cumulative total over the past two decades.

US Treasuries suffered their largest outflows in a year over the week, with withdrawals of $ 2 billion.

Stocks in the energy sector benefited from strong inflows, while European equities registered their first inflows in eight weeks.

Based on the allocations of its private clients, BofA identifies the share of money invested in cash at 11.2%, the highest level since last April. This category attracted the largest influx of money last week since July 2020, the US bank said. (Saikat Chatterjee report, French version Laetitia Volga, edited by Sophie Louet)





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