Bank of America warns of excessive market calm masking volatility risk, citing $14.2B equity fund outflows in three weeks and rising Treasury yields and energy prices.
Macro & Markets ·
Bank of America flagged what it characterizes as excessive market calm despite underlying stress signals, pointing to $14.2 billion in outflows from U.S. equity funds over three weeks as the largest such withdrawal since January 2026. The bank cited rising Treasury yields, oil prices above $100, and record diesel price increases alongside investor complacency and absent decisive government action as conditions that could trigger volatility spikes.