Bank of America analyst: Inflows into euro investment-grade bonds will continue to increase

Bank of America analysts said in a report that more money will flow into euro investment grade bonds than into government bonds and equities in 2024. The Bank of America said this trend is supported by increased market demand for higher yields as interest rate cuts lead to lower government bond yields. “As interest rates fall further in 2025, we think inflows into investment-grade bonds will continue to increase and will also outpace inflows into other 'risk-free' assets.”