LONDON (Reuters) – Investors stormed into financial and energy stocks last week, BofA’s weekly fund flow stats showed on Friday, frontloading positions ahead of U.S. president-elect Joe Biden’s announcement of a $1.9 trillion stimulus package.
The reflation trade saw stocks bagging $26.8 billion inflows with energy attracting $3.6 billion, the second highest ever. Financials meanwhile saw a “meaty” $2.1 billion flowing in, the U.S. investment bank said citing EPFR data.
Investors poured $1.8 billion into Treasury inflation-protected securities (TIPS) amid rising inflation expectations. In the U.S., the 10-year TIPS is now pricing in average annual inflation of 2.09% for the next decade.
(Reporting by Thyagaraju Adinarayan; Editing by Rachel Armstrong)
