Money Managers “Dumping” US Treasuries For Equities

Money Managers “Dumping” US Treasuries For Equities

Money Managers “Dumping” US Treasuries For Equities

$DIA, $SPY, $QQQ, $VXX

Money managers are dumping Treasury ETFs (exchange-traded funds) as a revival in equity and commodity prices curbs demand for the somewhat safer US debt.

Treasury ETF net redemption’s have reached $2.9-B so far in April, on top of $4.8-B pulled out in March, according to the data. Net purchases of US stock funds listed on exchanges have climbed to $8.5-B this month and totaled $16.7-B in March, the data show.

US government securities are headed for their biggest weekly loss in more than a month as data from China showed exports rose and industrial output increased.

Crude Oil prices rose last week before Oil producers discussed freezing output this weekend, the meeting in Doha collapsed. No production freeze or cuts.

The International Monetary Fund (IMF) is met in Washington at the weekend to focus on global economic growth, and issued a caution warning.

The MSCI All Country World Index of shares rose to the highest this year last Thursday.

The iShares 1-3 Year Treasury Bond ETF had the biggest outflows among listed debt funds this month, shrinking by $765-M, data compiled by Bloomberg show. It has returned 0.9 percent this year, including reinvested dividends.

The SPDR S&P 500 ETF Trust has attracted the most money among stock ETFs, growing by $1.71-B. It had gained 2.6% in Y 2016 as of last Thursday.

Monday, the US major stock market indexes finished at: DJIA +106.70 at 18004.16, NAS Comp +21.80 at 4960.02, S&P 500+13.61 at 2094.34

Volume: Trade was below average with less than 830-M/shares exchanged on the NYSE.

  • DJIA +3.3% YTD
  • S&P 500 +2.5% YTD
  • Russell 2000 +0.3% YTD
  • NAS Comp -1.0% YTD
HeffX-LTN Analysis for DIA:  Overall Short Intermediate Long
Bullish (0.36) Bullish (0.43) Bullish (0.40) Bullish (0.26)
HeffX-LTN Analysis for SPY:  Overall Short Intermediate Long
Bullish (0.37) Bullish (0.44) Bullish (0.37) Bullish (0.31)
HeffX-LTN Analysis for QQQ:  Overall Short Intermediate Long
Bullish (0.39) Very Bullish (0.52) Bullish (0.31) Bullish (0.35)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.48) Very Bearish (-0.55) Bearish (-0.40) Very Bearish (-0.50)

Stay tuned…

Paul Ebeling

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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