Mercoledì, 27 Settembre 2023 17:10

Bonds "in greatest bear market of all time"

LONDON (Reuters) - The rout in the fixed income market is causing the "greatest bond bear market of all time", Bank of America Global Research said in a note on Friday, as the peak-to-trough loss in the U.S. 30-year yield hit 50%.

In its weekly 'Flow Show' report, BofA said bond funds saw $2.5 billion of outflows in the week to Wednesday, but Treasuries saw inflows of $4.6 billion, their 34th straight week of inflows.

"No capitulation here," BofA strategists, led by Michael Hartnett, said.

Yields on 30-year Treasuries rose above 5% for the first time since 2007 on Wednesday, as investors fled fixed income.

Equity funds saw $3.3 billion of inflows, taking the year-to-date inflow of $110 billion.

"Investors have sold neither bonds nor stocks in 2023," BofA strategists said, "…everyone 'bearish' but nobody 'sold'."

(Reporting by Samuel Indyk; Editing by Amanda Cooper)

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