Investors pump $22bn into short-term US debt to ride out market ‘storm’

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Investors poured $ 22 billion in short -term US government debts this year after concerns about Donald Trump’s economic and trade policies, which led to a decrease in resort assets and sent shares.

The net flows to short -numbers treasury funds amounted to about 21.7 billion dollars between early January and 14, according to EPFR data, which paves the stage for the largest quarterly flood in vehicles in two years. The flow of long -term government bond funds has been positive for a quarter so far, but totaling $ 2.6 billion.

The series of funds comes in short government debts at a time when investors have sought to obtain shelter from a sales process in the most dangerous assets, such as stocks and unwanted classification companies, amid deepening fears that Trump’s aggressive agenda will slow down growth in the largest economy in the world and inflation.

“There were great flows, and it is logical to us because you had a lot of fluctuations in those compact risks, such as stocks,” said Bob Michel, head of the global fixed income at JPMorgan Management. “Now you look at the American bond market, and it can be anchor in the storm.”

A survey from Bank of America this week showed that investors have reduced “larger” to allocate shares in the United States in March, while unwanted bond differences-gap in borrowing costs between low-class classifications and US government-sharply increased.

“If you are increasingly worried about risk origins and perhaps the possibility of economic slowdown, or certainly some of the growth fears that brewed, you are likely to consider eliminating more serious alternatives,” said Mark Kabana, head of the US strategy at Bofa.

Analysts also indicated that the attractive yield has polished the resumption of short -term debts. For example, tank bonds for one month provide an annual return of 4.3 percent, while notes for two years 4 percent.

Investors and strategists also indicated that if the American economy shows signs of further slowdown, and the federal reserve reduces interest rates, the treasury revenues will follow its example – which makes the price estimation for bond holders.

The bet on short -term US debt will be tested later on Wednesday, when the Fed Bank issues the latest economic interest rates and interest rates. The markets expect discounts to three discounts in the price of the central bank’s policy this year, and any deviations from these expectations are likely to be crowned through the fixed income markets.

Analysts pointed out the uncertainty about the American economy’s path was also a factor in pushing investors towards short -term debts.

With “pure disposal” and “[if] Michelle of Jpmorgan said you believe that the stock market will pass a correction, and only tends money to go to cash and cash -like tools.

He added: “Certainly, the assets of the Money Market Fund have increased,” referring to the vehicles that carry the very dated treasury bills and cash equations-but “so you have the assets of short-term bond boxes.”

“The only reason you want to go out on the long end of [Treasury] The curve now is that you think that the American economy slows down and will get a bigger uproar at the long end. “

Kabana agreed that for those who “worried about the risks of growth and belief that the rates of decline, it makes sense to extend the curve.”

However, he added: “If you lack this conviction, and you are looking for some safety, the front boxes are liquid, safe and perhaps the easiest to enter and go out.”