LONDON (Reuters) – Investors threw $45.6 billion into cash funds in the week to March 24, the largest inflow since April 2020 and ratcheted up exposure to U.S. inflation protection, BofA’s flow data showed on Friday.
Treasury Inflation-Protected Securities (TIPS) funds saw an inflow of $1.8 billion, their third largest inflow ever, BofA said.
The U.S. central bank has committed to holding rates near zero for years to come, which investors fear could spur higher inflation given a strong economic recovery.
BofA also reported the largest flows towards emerging market debt in six weeks with $1.4 billion and a $2.7 billion inflow into Japanese equities, the largest in 21 weeks.
(Reporting by Julien Ponthus; editing by Dhara Ranasinghe)
