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J.P.Morgan Believe That Multi-Asset Month- & Quarter-End Rebal Is Complete

CROSS ASSET

J.P.Morgan note they “argued two weeks ago that the potential month- & quarter-end rebalancing flow from multi-asset investors such as balanced mutual funds, U.S. defined benefit pension funds, the Norwegian oil fund, the SNB and the GPIF, would support equity markets. Indeed, we estimated at the time the potential rebalancing flow out of bonds and into equities could be as much as $230bn. The movements since then in equity prices and bond yields are consistent with rebalancing flows taking place, though by our estimates this flow now looks likely to have been exhausted.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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