With the day starting off heavily to the downside in equities, risk-off was the over-riding theme, best illustrated by a 6.15% uptick in VXX.
Otherwise, flows in the market picked up where last week’s left off; continued inflows into Hi-Yld and Investment Grade Corporate bonds (JNK and HYG). A spike in Spanish bond yields led to greater than average selling volumes in country ETFs (EWP down 1.35% and EWG down 3.25%). We also noticed larger than usual block trades in IEI and IEF, instigated by sellers in these 3-7 and 7-10 yr treasury bond ETFs.
Municipal Bonds and REITS were among the few gainers on the day. On our desk, we saw flows into MLN and REZ.
International names remained active again with an abundance of 2-way flows. We saw sellers of India, Rare Earths, REMX and buyers of EFAV.
Domestic ETFs with a focus on dividends saw inflows; PEY and FDL in particular.