BofA warns that the credit party is ending as inflows turn to outflows due to soaring rates. "Rates market jitters are having a direct impact on flow strength into bond markets. Last week, government bond, money market and high-yield funds recorded outflows. While inflows into high-grade funds resumed, we are sceptical at the current juncture that this will continue in a world of a higher rates vol backdrop. We note that while rates vol declined last week, it has moved notably higher over the past couple of days. We cannot see such a development as a tailwind for flows into credit funds. Rates vol at current levels of c.90pts (for SMOVEU3M index) is not supportive for flows into riskier assets like credit vis-à-vis flows into "risk-free" proxies such as government deb." - BofA Ioannis Angelakis In a world where IG (and increasingly HY) funds half of AI capex, this is a problem.

BofA downgraded $NKE to Underperform, cutting its price target to $30 from $47. The firm says Nike’s innovation continues to be overshadowed by pressure on its classics business. It now expects sales declines through FY27, versus its earlier expectation for a spring recovery. BofA cut FY27 and FY28 EPS estimates by 11% and 12%, respectively, putting its FY27 estimate 14% below consensus.

BOFA RAISES 10-YEAR TREASURY YIELD TARGET TO 5% Bank of America raised its year-end U.S. 10-year yield forecast to 5.0% from 4.5%, citing fiscal concerns and broader market risks. The bank also lifted its 2-year yield forecast to 5.0%. BofA sees risks from Iran, fiscal pressures, trade tensions and AI uncertainty, while also raising its H2 Brent oil forecast to $95 per barrel.

BofA: expect U.S. top hyperscalers (Amazon, Microsoft, Oracle, Alphabet) to grow cloud revenue to $975 billion in 2028, up from $290 billion in 2025. Meanwhile, China's top hyperscalers (Alibaba, Tencent, ByteDance, Baidu) cloud revenue to increase to $94 billion, up from $28 billion. $GOOGL $AMZN $MSFT $ORCL