Bank of America noted that all major asset classes recorded inflows this week, with money market funds and bond funds absorbing the vast majority of the capital. Citing EPFR Global data for the week ending September 2, BofA reported $30 billion flowing into money market funds, $18.3 billion into bonds, $3.2 billion into gold, $16.1 billion into equities, and $500 million into cryptocurrencies.

Key weekly flow trends: Cryptocurrencies saw $5.5 billion in combined inflows over the past five weeks, the highest level since October. Equity inflows hit a nine-week low, while the technology sector experienced outflows of $1.5 billion, marking the largest since June. Financials recorded a fifth consecutive week of outflows, totaling $900 million.

Strategists led by Michael Hartnett stated that the sharp appreciation of the yen signals an emerging "policy panic." Policies implemented "at all costs" to sustain nominal macroeconomic prosperity and asset price bull markets imply that investors should remain bullish on commodities and hedges against currency devaluation, such as gold.

Regional fund flows: U.S. equities attracted inflows for a third straight week, reaching $15.6 billion. European equities saw $1.2 billion in inflows for a second consecutive week. Japanese equities posted inflows for a tenth straight week, amounting to $200 million. Emerging markets experienced renewed outflows, totaling $11.9 billion.

Fixed income: Investment-grade bonds saw inflows for a 22nd consecutive week, reaching $9.2 billion. High-yield bonds resumed inflows with $1.5 billion. U.S. Treasuries attracted $6.2 billion for a tenth straight week. Emerging market bonds posted inflows for a fifth consecutive week, totaling $1.1 billion. Bank loans saw their first outflows in 13 weeks, amounting to $600 million.