Search Results for: bond

Equities vs. Bonds Recent trends suggest that the risk/reward profile of bonds, particularly U.S. Treasuries, has become more favorable compared to equities. Image: Gavekal, Macrobond

Flows into Equity and Bonds Funds Substantial inflows into equity and bond funds are fueled by investor optimism regarding falling inflation and the potential for interest rate cuts by the Fed. Image: Deutsche Bank Asset Allocation

U.S. CPI Inflation vs. U.S. 10-Year Bond Yield CPI dynamics in early 2024 show a clear pattern: Q1’s higher inflation prompted increased Fed scrutiny, while Q2’s declines suggest potential interest rate cuts, impacting market expectations and U.S. Treasury yields on CPI days. Image: BofA Global Research

High Yield Bond Flows Persistence outflows from high yield bonds could signal a lack of confidence in the underlying companies and their capacity to fulfill debt obligations, making it a crucial indicator to monitor closely. Image: BofA Global Investment Strategy

S&P 500 Index and Yield Spread (A-Rated vs. Junk Bonds) When yield spreads between A-rated and junk bonds widen, the S&P 500 tends to fall. Therefore, it serves as a crucial leading indicator to closely monitor. Image: Real Investment Advice

IG Bond Flows Investment-grade corporate bond funds have maintained their appeal to investors, leading to the 38th uninterrupted week of inflows. Image: BofA Global Investment Strategy

Rolling 24 Month Correlation Between U.S. Treasury Bonds and Equities Amid high inflation, UST bonds become less effective as a hedge against U.S. stocks, as rising prices erode bond payouts and interest rate hikes lead to a drop in bond prices. Image: BofA Research Investment Committee

Weekly Bond Fund Flows Bond funds saw the largest inflow since February 2021, reflecting investors’ desire to lock in high yields amid expectations of future interest rate cuts. Image: BofA Global Investment Strategy

ISM Manufacturing PMI and Global Stocks vs. Government Bonds In a potential shift from a “no” to a “hard” landing scenario, government bonds may outperform due to increased risk aversion, interest rate cuts, lower inflation expectations, and their historical performance during economic downturns. Image: BofA Global Investment Strategy

CTAs Exposure to Bonds CTAs’ overall allocation to bonds in the 8th percentile indicates a relatively low exposure to fixed income securities. Image: Deutsche Bank Asset Allocation