The "Great Rotation" out of bonds and into equities has been a hot topic this year, but recent research has found although investor cash is fast leaving the bond market, it is not going in the direction of equities yet.
According to U.S.-based Trim Tabs Investment Research, which tracks stock market liquidity, money coming out of bonds is now going into savings deposits or money market funds.
"We think we are a long way away from the 'Great Rotation' that so many market strategists are anticipating. Far more of the money coming out of bonds seems to be making its way under the mattress than into equities," said Trim Tabs in a report.
(Read More: The 'Great Rotation'—Is It Finally Happening?)
According to Trim Tab's data, bond mutual funds and ETFs saw outflows of $67.9 billion in June, and $11.8 billion from July 1 to July 11.
Meanwhile savings deposits surged by a whopping $74.8 billion in the month of June, and retail money market funds - open-ended mutual funds that invests in short-term debt securities - took in $33 billion, over the same period.
A weekly liquidity report from funds data firm Lipper said U.S. investors pulled $1.1 billion from municipal bond mutual funds in the week ending July 10. At the same time money market funds saw a surge in net inflows of $22.9 billion.
(Read More: The Great Rotation May Be Just a Grand Illusion)
By contrast, all equity mutual funds and ETFs only received $20.8 billion since the start of June to July 11, Trim Tabs said.
Earlier this year, the return of risk appetite had led to forecasts that pension and insurance funds would give up low-yielding government debt and in turn move to more attractive equities.
(Read More: Why Talk of a 'Great Rotation' May Be Overblown)
But the transition never fully took hold as investors remained unconvinced of a recovery in the U.S. economy and headwinds including the euro zone crisis and fears of a slowdown in China came to a head again.
However, outflows from fixed income have surged again in recent months after the U.S. Federal Reserve hinted in May that it would slow the rate of its $85 billion a month quantitative easing program later this year.
As bond yields surged across the board, funds which invest in higher risk assets like long-term corporate, high yield or emerging market debt have seen particularly large outflows, a Nomura research analyst told CNBC.
(Read More: Bond Sell-Off Heightens Risk of '1994 Moment')
Yields on the 10-year Treasurys have spiked 65 basis points since mid-May to around 2.59 percent.
—By CNBC's Katie Holliday: Follow her on Twitter @hollidaykatie