Investors pump $22bn into short-term US debt to ride out market ‘storm’

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Donald Trump’s economic and trade policies this year in the short -term US government’s Debt, investors have poured $ 22 billion dollars and created a competition for Haven and send tomling to stocks.

According to EPFR data, the net flow between the low-level treasury fund hit about $ 21.7 billion in about $ 21.7 billion, according to the EPFR data, the highest quarter flood for vehicles within two years. The long -term government bond funds were also positive for the quarterly today, but the total $ 2.6BN total.

The cascade of money comes on low-level official Debt because investors sought refuge from the sale of stock and junk-raged corporate bonds, such as investors, in deep anxiety, in the anxiety that Trump’s aggressive trade agenda will slow down the world’s largest growth in the world Economy And stoke high inflation.

Bob Michel, head of the Global Fixed Income Head of JP Morgan Asset Management, said, “There is a lot of flow and it makes us the right idea because you have a lot of instability in these markets like Embed Risted Equity.” “And now you look at the US bond market, and it can be anchor of the storm.”

This week a bank of America survey showed that investors did it “The biggest” cut To their US equity allocation in March, when junk bonds spread — the interrow-taking interrogation between the short-rated agencies and the US government- Have gone up sharplyThe

Mark Kabana, head of the US-rate strategy of the BFA, says: “If you are gradually concerned about the risk resources and the possibility of an economic downturn, or certainly some growth anxiety that is created, it is probably understandable to think about the outbreak of risky options.”

Analysts also mentioned that attractive yields have polished the short -term Debt application. For example, one month’s treasury provides a 4.3 percent annual yield, while two years notes give 4 percent.

Investors and strategists also mentioned that if the US economy shows more slow signs and the federal reserve will reduce interest rates, the Treasury yields will follow – the price of prices for bondholders.

BET on short -term US Debt will be tested later on Wednesday, when Fed issues its latest economic and interest rate estimates. Markets are expecting two to three cuts at the central bank’s policy rate this year, and any deviation from that view is likely to spread through fixed income markets.

Analysts point out that uncertainty about the tractory of the US economy was also a reason to push investors to short-term Debt.

“Authentic de-risking” and “including[if] You think that the equity market is about to correct the market, meaning only tend to go to cash and cash-based materials ”, JP Michel says Michelle.

“Certainly, the wealth of the Money Market fund has increased,” he added, pointing to the vehicles that keep the treasury bill and cash equivalent to the ultimate date-but therefore the short-time bond funds have resources. “

Nataliens Secureties added Andy Brenar, the head of international steady income, “You are the only reason you want to go to its long edge [Treasury] Now the curve is that you believe the US economy is slowing down and you will get a bigger push for your buck in the long end. “

Cabana agreed that “for those who are concerned with the risk of growth and think that the rates will be reduced, the curve is understandable.”

However, he added, “If you lack this view of the ICT, you are just seeking some protection, the front-end funds are liquid, safe and probably the easiest to enter.”