Stellar inflows into fixed income this week has caused one investment bank to warn of a "bond shock" in the coming months.
EPFR, a data firm that tracks investment fund flows, releases weekly data on Thursday evenings with Bank of America Merrill Lynch digesting the figures and giving its own take on a Friday. The bank was a little concerned this Friday after $6.6 billion of bond inflows in the last week.
"'Bond shock' remains key autumn risk given euphoric flows to assets tied to 'zero-rate' expectations," Michael Hartnett and Brian Leung, two strategists at the bank, said in a note Friday morning entitled "Not so fast, Mr. Bond".
Europe bond funds recorded inflows for the week, with geographically diversified funds attracting the bulk of the fresh money, according to EPFR. At the country level, Spanish bond funds posted their biggest inflow since the middle of the first quarter of 2015, it said.