U.S. bond funds take in largest quarterly inflows since 2012 as investors turn cautious toward U.S. reflation story.

While the Fed has gingerly started to hike the Funds Rate, it has created an uncertain challenge to both ends of the yield curve by bringing its swollen balance sheet into the mix.

Flows into Germany and Italy Equity Funds hit 66- and 72-week highs respectively in late March and U.K. Bond Funds recorded their biggest inflow year-to-date.

Investors look to benefit from growth in developed markets increasing the demand for commodities and manufactured goods.

New money flows into Europe, Japan and Australian equity funds as investors look for alternative to U.S. “reflation” story.

Infrastructure funds see an 11-week inflow streak come to an end, while redemptions from industrial sector funds highest in over a year.

Investors put new money into bonds as fresh doubts arise that the current U.S. administration’s reflationary rhetoric will translate into action.

Looking at household formation, an aging population and the contrarian indicator of “confidence” surveys to understand where the market is headed.

Redemptions from U.S. Equity Funds jumped to a 38-week high as investors again questioned whether U.S. President Donald Trump’s administration has the focus and political skills to get its economic agenda through Congress.

Once again the bulk of the week’s inflows went to the diversified Global Emerging Markets (GEM) Equity Funds.