Flows & Liquidity

Latest edition · September 2, 2026

JPM Flows Liquidity

Despite price-based financial conditions tightening due to higher global bond yields, quantity-based metrics such as credit and M2 money creation remain strongly supportive. Cross-asset investor positioning remains moderately long in equities and bonds without reaching extreme territory, while market liquidity has weakened primarily in cash US Treasuries.

J.P. Morgan's Global Markets Strategy report analyzes the divergence between price-based and quantity-based financial conditions amid a renewed bond sell-off pushing Global Agg yields up by 15bp to over 4.1%. While price-based models reflect relative tightening in 3Q26 driven by higher high-grade yields, quantity metrics indicate robust liquidity: US loan growth is steady at 7% y/y, US M2 growth is on pace to approach $2tr in 2026, and European money creation is accelerating towards €1tr. Meanwhile, market depth has worsened notably in cash US Treasuries, and breadth remains low for Nikkei, gold, and crypto futures. Cross-asset positioning sits at the 70th percentile for equities and 58th percentile for bonds, led by overweights in EM equities, commodities ex-gold, energy, and technology.

Key takeaways from the latest edition

• 1.While price-based metrics indicate financial conditions have tightened relative to earlier periods due to rising bond yields, quantity-based indicators such as broad credit and M2 money creation suggest conditions remain supportive of economic growth.
• 2.Market trading liquidity has deteriorated significantly for cash US Treasuries near previous March 2026 lows, while liquidity breadth remains historically subdued for Nikkei, gold, and bitcoin futures.
• 3.Investors remain modestly long equities (70th percentile) and government bonds (58th percentile), but positioning remains far from extreme levels; EM equities and commodities ex-gold represent the largest overweights, while credit and EM bonds/FX are underweight.

What this series covers

• Flows & Liquidity
• Quantity-based vs. price-based financial conditions metrics
• Market (trading) liquidity has deteriorated mostly for cash USTs in recent weeks and appears to remain rather low for Nikkei, gold and bitcoin futures
• Investors appear to be still long equities and bonds but only modestly so
• Appendix
• ETF Flow Monitor (as of 2nd September)
• Short Interest Monitor
• Cross Asset Volatility Monitor
• Option skew monitor
• Equity market health map
• Spec position monitor
• Mutual fund and hedge fund betas
• CTAs – Trend following investors' momentum indicators
• Corporate Activity
• Pension fund and insurance company flows
• Credit Creation
• Bitcoin monitor
• Japanese flows and positions
• Commodity flows and positions
• Corporate FX hedging proxies
• Non-Bank investors' implied allocations

Edition archive

• JPM Flows Liquidity

  September 2, 2026

• JPM Flows Liquidity

  July 1, 2026

• JPM Flows & Liquidity Share buybacks exceeded half trillion dollars in just April and May

  June 9, 2026