Situation Room

Latest edition · August 27, 2026

Situation Room More into HG

US high grade bond fund and ETF inflows accelerated to +$6.71bn for the week ending August 26, powered by strong HG ETF demand, while equities (-$4.40bn) and HY bonds (-$1.27bn) suffered net outflows in a risk-off shift.

For the week ending August 26, US high grade (HG) bond funds and ETFs saw inflows accelerate to +$6.71bn, driven by +$6.53bn into HG ETFs. In contrast, risk-off sentiment drove flows negative in equities (-$4.40bn) and high yield (-$1.27bn, the largest outflow in 5 months), while loans saw muted inflows of +$0.07bn. Emerging market bonds (+$0.66bn), municipal bonds (+$2.28bn), and money market funds (+$7.55bn) also saw positive inflows. In the secondary market, estimated investment grade dealer inventories declined to -$6.5bn (-$9.7mn DV01) as of August 27, while month-to-date US IG primary issuance reached $163.2bn.

Key takeaways from the latest edition

• 1.Inflows to US high grade (HG) bond funds and ETFs accelerated to +$6.71bn for the week ending August 26, driven primarily by HG ETFs (+$6.53bn).
• 2.A risk-off rotation emerged across risk assets, with equities seeing -$4.40bn in outflows and high yield bonds recording -$1.27bn in outflows (the largest in 5 months).
• 3.Estimated primary dealer inventories for US investment grade corporate bonds declined to -$6.5bn as of August 27 (DV01 of -$9.7mn), driven by net dealer selling across sectors.

What this series covers

• More into HG
• Risk off
• Appendix: defining high grade
• Daily supply snapshot
• Daily dealer inventories update
• Daily HG fund flows
• Daily foreign demand tracker
• Common abbreviations:

Edition archive

• Situation Room More into HG

  August 27, 2026

• BofA Situation Room Consumer vs. Iran

  July 13, 2026

• BofA Situation Room IG July supply: $130bn

  June 30, 2026

• BofA Situation Room Oil > CPI

  June 11, 2026

• BofA Situation Room Same tale, wide tail

  June 9, 2026

• BofA Situation Room Strong into bonds 20260604

  June 5, 2026