Citi says fund flows are staying positive in both size and breadth
Citi's report on fund flows indicates a strong and broad-based inflow into various asset classes, marking the highest breadth since 2021.
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Citi says fund flows are staying positive in both size and breadth
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- The breadth of markets seeing net positive inflows from funds have reached the highest level since 2021.
- In its fund flow insights update, Citi said that in the week of 18th February, bond funds saw USD 26.4bln of inflows, while equity funds saw USD 35.2bln of inflows.
- Inflows to DM funds remain steady, with USD 15.3bln and USD 9.6bln going into Global and US funds, respectively.
- Citi notes that European funds also had USD 3.0bln of inflows.
This robust demand for bond and equity funds suggests heightened investor confidence, which may support bullish sentiment in the equity markets and underpin bond yields. Given these inflows, we could see upward pressure on the USD as investors seek safe-haven assets, while also reflecting positively on metals like gold in the current market environment.
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