Reserve Bank Credit, Treasury Securities and MBS This chart shows how Reserve Bank credit has increased, as the Fed has continued to add treasury securities to its balance sheet. Image: Wells Fargo Investment Institute
Foreign Holdings of U.S. Treasury Securities by Selected Countries Japan and China are the two major foreign holders of U.S. Treasury securities. Currently, Japan surpasses China as largest foreign holder of U.S. Treasuries. Image: Goldman Sachs Global Investment Research
When Treasury Inflation-Protected Securities (TIPS) Outperform? The chart shows that Treasury Inflation-Protected Securities (TIPS) usually outperform regular Treasuries when the 10-year breakeven inflation rate is below 2%. The 10-year breakeven inflation rate is a market-based measure of expected inflation over the next 10 years. Image: Movement Capital LLC
Monthly Flow of G4 Central Bank Asset Purchases Global central banks are continuing to reduce their asset holdings at a robust pace, primarily through balance sheet runoff and measured non-reinvestment of maturing securities. Image: Deutsche Bank
Corporate Clients’ 4-Week Average Buybacks vs. S&P 500 Total Quarterly Buybacks BofA’s corporate clients are significantly increasing stock buybacks, defying recession fears and indicating a positive market outlook, suggesting these companies expect ongoing growth and stability in the future. Image: BofA Securities
Corporate Clients – Buybacks (4-Week Average) Strong buyback activity from BofA’s corporate clients, exceeding historical averages, is a positive sign for investors, reflecting confidence in future growth prospects. Image: BofA Securities
Corporate Client Buybacks as a % of S&P 500 Market Capitalization BofA’s corporate clients are currently engaging in significant stock buyback activities, marking an all-time high. This trend is generally perceived as a positive indicator for the broader market. Image: BofA Securities
Market – Net Buys by Sector Last week, ETFs recorded the largest inflows, while the tech sector saw the largest outflows from BofA’s private clients. Image: BofA Securities
Flows – Net Buys 4-Week Average and S&P 500 Last week, BofA’s clients were significant net sellers of U.S. equities, unloading approximately $7 billion worth of stocks. Image: BofA Securities
Hedge Funds – Net Buys Hedge funds continue to hit the sell button, resulting in significant outflows over the past 3 months. Image: BofA Securities
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