In the last week, until Wednesday, investors made stock sales at the highest weekly rate so far this year, according to a report from Bank of America Global Research published this Friday.
The market of variable income experienced a weekly outflow of $16.9 billion, while investors purchased bonds worth $2.5 billion, marking the 26th consecutive week of entriesas reported by BofA, citing EPFR data.
Additionally, US$300 million of gold investment and US$4.3 billion of cash were withdrawn. However, over the course of this year, investors They have allocated 1 billion dollars to cash investments. BofA described this behavior as “cautious and waiting for returns“.
At the same time, investors have invested a total of US$147,000 million in US treasury bonds so far this year. The BofA “bull & bear” indicator, which reflects market confidence, decreased from 3.6 to 3.4.
Argentina: impact on fixed income
Sovereign bonds in dollars plummeted to almost 6% this Thursday, September 21and the Argentine country risk crossed 2,300 points without stops, in the midst of an uncertain pre-electoral context, and when global markets fell due to short-term financial fears, in the face of a future new increase in the interest rate US Federal Reserve (Fed).
Dollar-nominated securities suffered widespread declines, which were led by the Global 2035 (-5.7%), the Bonar 2035 (-4.2%); and Global 2046 (-3.8%). The most traded, the Bonar 2030, and the Global 2030, recorded drops of 2.5% and 3%, respectively.
The weighted average price of the global ones fell towards US$29, representing a daily drop of 4% that was the largest since August 15 (two days post-STEP).
“The collapse was general and Argentina in particular is more exposed, but the weakness of prices on Wall Street affected all strata of the market. Here, the political intrigue of what is to come was added”explained a financial manager from the external private bank.
Source: Ambito
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