A picture illustration shows U.S. 100-dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao/File PhotoU.S. Treasuries saw their biggest inflows since October 2020 while investment grade and high yield bond funds saw large outflows on concerns of surging inflation and a hawkish Federal Reserve, BofA said in a weekly report on Thursday.

Cash funds saw the biggest weekly inflows at $27.1 billion, followed by equities at $9 billion, according to BofA’s weekly flows note based on EPFR data. In a sign that investors are unwinding some of their short bonds and long equity trades this year that has paid handsome dividends, the U.S. investment bank’s private clients have trimmed their equity positions for the past three weeks with outflows from growth and industrial sectors.

Narrowing market breadth was another concern. Just 5 of the biggest U.S. technology stocks accounted for 71% of the nearly 20% gains in U.S stocks, BoFA analysts noted.

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