Bank of America warns of excessive market calm masking volatility risk amid $14.2B equity fund outflows, rising Treasury yields, and oil price pressures.
Macro & Markets ·
Bank of America identified what it characterizes as "excessive calm" in financial markets despite underlying conditions pointing to instability. U.S. equity funds saw $14.2 billion in outflows over three weeks, the largest withdrawal since January 2026, while Treasury yields climbed and crude oil moved above $100 per barrel. The bank attributed the risk environment to investor complacency alongside the absence of decisive policy measures, creating conditions for unexpected market swings.