LONDON (Reuters) – The rout within the fastened earnings market is inflicting the “best bond bear market of all time”, Financial institution of America World Analysis stated in a be aware on Friday, because the peak-to-trough loss within the U.S. 30-year yield hit 50%.
In its weekly ‘Stream Present’ report, BofA stated bond funds noticed $2.5 billion of outflows within the week to Wednesday, however Treasuries noticed inflows of $4.6 billion, their thirty fourth straight week of inflows.
“No capitulation right here,” BofA strategists, led by Michael Hartnett, stated.
Yields on 30-year Treasuries rose above 5% for the primary time since 2007 on Wednesday, as buyers fled fastened earnings.
Fairness funds noticed $3.3 billion of inflows, taking the year-to-date influx of $110 billion.
“Buyers have bought neither bonds nor shares in 2023,” BofA strategists stated, “…everybody ‘bearish’ however no one ‘bought’.”
(Reporting by Samuel Indyk; Enhancing by Amanda Cooper)
