June 12, 2020 / 8:55 AM / 24 days ago

Investors rush into bonds, equities - BofA

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.

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, here)

Julien Ponthus, editing by Thyagaraju Adinarayan

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