Reuters reports that according to BofA's weekly flows note based on EPFR data, investment flows into equities slowed while emerging market debt and equity funds saw the biggest redemption in ten weeks.
Investors ploughed $11.8 billion into stocks and $77 million into bonds, in the week to Wednesday. Corporate credit across all classes saw money leave with high yield and emerging market debt seeing the biggest outflows at $1.8 billion and $2.5 billion each.
BofA analysts believe that policymakers and politicians are now worried inflation will damage growth and approval ratings, resulting in a broad-based policy pivot from pro-growth to anti-inflation policies.