BofA rebalancing note (USD): expect around 1.7bln of flows into equities, 9bln out of Treasuries.

• BofA adds that the majority of the rebalancing is likely to occur at quarter rather than month end.
• Continue to expect structural duration demand from private pension funds, likely to persist across the medium-long term.

The Bank of America rebalancing note indicates a significant shift in asset flows, with an expected $1.7 billion into equities and $9 billion exiting Treasuries. This suggests a risk-on sentiment as investors favor equities, while the persistent demand for duration from private pension funds implies a long-term structural shift in allocation that could pressure Treasury yields upward in the medium to long term.