In their weekly flow show note, BofA analysts said Friday that inflation hedges are back on.
Analysts revealed that cash saw inflows in the past two weeks, with a $104.1 billion inflow to cash in the month to date. As a result, they said there has been “no exodus from cash.”
Focusing on TIPS, analysts said they said the first inflow since August 2022, so it is “interesting to see inflation hedges back on after CPI 9% to 3% drop since autumn’22.”
Elsewhere, there were tech inflows in the past six weeks, albeit the smallest inflow over the period in the past week at just $0.1B. Materials saw the largest inflow in the past 25 weeks and a $1.9B inflow in the past two weeks “as investors position for improvement in China outlook .”
Analysts noted that the recent GDP data showed “the fastest nominal GDP recovery since WW2.”