A Bank of America survey shows that optimism surrounding risky assets is cooling as investors worry about a disorderly surge in bond yields and the US midterm election results. According to the survey, 49% of net fund managers are currently overallocated to global stocks, down from 56% last month. The interviewees said they now believe that the disorderly rise in bond yields is the biggest tail risk facing the market. Bank of America strategist Michael Hartnett wrote in a report that the cash holding ratio rose to 3.9% of the investment portfolio, but it was still at a low level that would trigger a “sell signal” for risky assets. As markets feared an inflationary shock, bond yields broke through key levels, putting pressure on global stock markets. On Tuesday, the yield on US 10-year Treasury bonds rose to the highest level since 2007, while oil prices remained stable above $100 per barrel. The MSCI AC Global Index declined for the second consecutive trading day.

A Bank of America survey shows that optimism surrounding risky assets is cooling as investors worry about a disorderly surge in bond yields and the US midterm election results. According to the survey, 49% of net fund managers are currently overallocated to global stocks, down from 56% last month. The interviewees said they now believe that the disorderly rise in bond yields is the biggest tail risk facing the market. Bank of America strategist Michael Hartnett wrote in a report that the cash holding ratio rose to 3.9% of the investment portfolio, but it was still at a low level that would trigger a “sell signal” for risky assets. As markets feared an inflationary shock, bond yields broke through key levels, putting pressure on global stock markets. On Tuesday, the yield on US 10-year Treasury bonds rose to the highest level since 2007, while oil prices remained stable above $100 per barrel. The MSCI AC Global Index declined for the second consecutive trading day.