Follow The Flow: Bonds over stocks

Research evidence excerpt

Follow The Flow: Bonds over stocks

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Follow The Flow

Bonds over stocks

Inflows persist in Fixed income – Weakness in Equities 26 June 2026

A lower rates vol backdrop in Europe has been instrumental in driving strong inflows into Credit Strategy

fixed income funds following the early‑March sell‑off. Since then, over the past 11 Europe

weeks, fixed income funds have seen uninterrupted inflows, while equity funds have Ioannis Angelakis

experienced outflows. We expect this strong demand for bonds to persist in a world of Credit Derivatives Strategist

high yields but low rates volatility (see report: The ‘retail-isation’ of credit markets). MLI+44 (UK)20 7996 0059

ioannis.angelakis@bofa.com

Over the past week… Barnaby Martin

High grade funds registered inflows last week, continuing a nine-week streak of CreditMLI (UK)Strategist

inflows. Mid-term funds topped flows over the previous week - now stretching to eleven +44 20 7995 0458

barnaby.martin@bofa.com

consecutive weeks. Short- and long-term funds suffered from marginal outflows. IG

ETFs registered their 12th consecutive weekly inflow this week. MohitCredit StrategistAgarwalla

MLI (UK)

High yield funds recorded their tenth inflow in the past 11 weeks. Among European- mohit.agarwalla@bofa.com

domiciled funds, Euro-focussed HY funds saw materially stronger inflows than peers last

week, with Global-focussed HY funds and US-focussed HY funds also attracting inflows.

HY ETFs also recorded inflows last week marking two consecutive weekly inflows.

Exhibit 1: In a lower rates vol backdrop bonds are back Table 1:Weekly and YTD European Weakness is apparent in the equity land, while strong inflows persist in fixed income space

retail flows