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The Great Unrotation: Biggest Inflow Into Treasury Funds Since 2010; $7 Billion Outflow From Stocks

Tyler Durden's picture




 

Remember the legend of the great rotation? Neither do we. But we do know that a Treasury fund inflow of $3.06 billion, the largest since at least 2010 according to Bank of America, coupled with an equity fund outflow of $7.1 billion, means just one thing: the great unrotation is raging. It does beg one question, however, with equity funds dumping in the past week, just who is actually left BTFATH? (Don't worry, that's rhetorical - we all have Kevin Henry and the HFT crew to thank for the ongoing endless manipulation of the rigged market).

From Bank of America:

Reverse rotation into Treasuries

Following the recent market volatility mutual fund and ETF investors sold stocks, reduced purchases of high grade and instead bought Treasury bonds last week (ending on May 21st). Long-term Treasury funds reported an inflow of $3.06bn, the highest since at least 2010. As flows tend to follow returns, the buying is consistent with the sharp decrease in interest rates last week. Some of this large buying of Treasuries appears to have come at the expense of  longer-dated high grade funds: inflows to high grade outside of short-term funds dropped by about $1bn relative to the prior week to a $0.85bn inflow. Inflows to short-term high grade funds also fell to $0.42bn last week from $0.82bn inflow in the prior week.

 

Still, the net effect was more flows into bonds, as inflows to all fixed income funds rose to $6.61bn last week from a $3.54bn inflow in the prior week. Equity  funds, on the other hand, reported a $7.10bn outflow last week, down from a $9.02bn inflow in the prior week. At the same time inflows to high yield funds rose to $0.73bn last week, driven by ETFs. Loan funds, on the other hand, continued to report outflows, totaling $0.36bn last week, while inflows to EM (+$0.51bn)  and munis (+$0.54bn) remained steady. Finally, flows for money market funds remained close to flat, with a $0.57bn outflow.

In tables:

And charts:

 

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Fri, 05/23/2014 - 10:01 | 4788300 sessinpo
sessinpo's picture

Sales are still below pre 2008 levels by several million (found by the data your website uses). And as businessweek reported, July 2013, some 3.27 million cars go unsold.

http://www.businessweek.com/articles/2013-07-31/american-automobile-glut...

 

Fri, 05/23/2014 - 10:06 | 4788329 john39
john39's picture

OT. putin interview to air on cnb today at 12:30

http://www.cnbc.com/id/101697110

Fri, 05/23/2014 - 10:08 | 4788335 Protokletos
Protokletos's picture

Ouch.  ZH has egg on its face on this one for sure.  

Fri, 05/23/2014 - 09:52 | 4788282 Zirpedge
Zirpedge's picture

I've been loading up my MyRA hand over fist. I doubt I'm the only one.

Fri, 05/23/2014 - 10:00 | 4788307 fonzannoon
fonzannoon's picture

Do you think TPTB really cares as long as there are only 2 choices? Stawks and Bawnds? Feel free to go back and forth between the two pens, sheep. Please keep it orderly, move along now.

Fri, 05/23/2014 - 10:05 | 4788324 LawsofPhysics
LawsofPhysics's picture

Yep. 

Fri, 05/23/2014 - 10:13 | 4788354 Bill of Rights
Bill of Rights's picture

We appreciate your contributions.

Thank you

Sincerely .Gov

Fri, 05/23/2014 - 09:57 | 4788296 timmeh
timmeh's picture

fuck that! fuck volume! fuck Bollinger! fuck RSI! just BTFD!

Fri, 05/23/2014 - 10:01 | 4788310 Obama_4_Dictator
Obama_4_Dictator's picture

Tell me again, how the market is up this week then......

Fri, 05/23/2014 - 10:05 | 4788326 replaceme
replaceme's picture

Prudent stock picking, that and stocks always go up.

Fri, 05/23/2014 - 10:54 | 4788483 Redneck Hippy
Redneck Hippy's picture

The market is up because there is more money on the buy side than the sell side.  Would you like to subscribe to my newsletter?

Fri, 05/23/2014 - 10:01 | 4788311 LawsofPhysics
LawsofPhysics's picture

"Winning" bitchez, no need print (even though they are) with so many running back to the other side of the boat...

Surreal shit, but I'll keep front-running the idiocracy, why not.  Turn paper profits into more revenue generating assets.

Fri, 05/23/2014 - 10:02 | 4788317 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

the current period is starting to remind me of late June - early Jul of last year. We had 13/14 up days on the NASDAQ. Every day would be .4 - 1.2 percent or something up on the index. never a down day or futures in the red. 

Fri, 05/23/2014 - 10:21 | 4788380 buzzsaw99
buzzsaw99's picture

makes me so proud. :shniff!:

Fri, 05/23/2014 - 10:44 | 4788446 Atomizer
Atomizer's picture

Sell in May and go away.

Fri, 05/23/2014 - 10:55 | 4788491 Redneck Hippy
Redneck Hippy's picture

Sell in May and you don't get to play, all summer.

Fri, 05/23/2014 - 11:40 | 4788716 I Write Code
I Write Code's picture

The point being that any inflow is noteworthy (and perverse), not that $3b is a big number anymore.

Fri, 05/23/2014 - 12:06 | 4788847 firewire888
firewire888's picture

just who is actually left BTFATH?

it's too big to fail, has to be propped, rigged.   If every 401K went south and baby boomers retiring, no food stamps then USA = Thailand.

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