CBA: Likely There Will Only Be Small Month-End Buying Flow

Ahead of month-end CBA note that "there hasn't really been anything like the volume of issuance needed to really impact the duration of the index as a whole. The large sell-off would lower the overall duration of the index, but because it does this with existing bonds, there is no need for the rebalancing at month end to reflect it. The existing bonds already reflect the change in duration. On the other hand, the large sell-off in bonds may prompt some rebalancing flows out of equities into bonds, to maintain an overall portfolio mix for some investors. The overall likelihood is that there will be a small month-end buying flow only."