Selling of T-bills by BofA private clients hits new weekly record

Bank of America’s private clients registered a record week of T-bill selling, according to the firm’s investment strategists, who described this development as a “mirror-image of risk-off record weekly inflow to T-bills in early March.”

BofA’s private clients are now aggressively selling T-bills compared to the record weekly inflow following the SVB collapse in March. In the week to July 19, cash and bonds attracted the majority of inflows, the analysts wrote, citing EPFR data.

Equities witnessed outflows of $2.1 billion while $7.5B went to cash and $1.4B to bonds. Treasures had the smallest inflows in the last 13 weeks, they added.

On the other hand, tech had the 4th week of inflows at $1.8B and energy had its first inflow in 14 weeks with $600 million. Region-wise, U.S. equities lost $2.3B while Europe saw outflows of $1.6B – marking the 19th consecutive week of selling. On the other hand, Japan saw the 7th week of inflows.

As far as BofA’s private clients are concerned, stocks saw the largest equity inflows since SVB while bonds witnessed only the 2nd week of outflows since February 2022.