CTAs Add $40bn Equity Exposure, Extend Rally

Systematic funds (CTAs) added about $40 bn equity exposure this week, rebuilding long positions in U.S. equities.
Faster and medium‑term CTAs restored U.S. equity longs, while slower cohorts remain under‑weight relative to Jan/Feb highs.
BofA projects Europe to attract roughly $20 bn CTA buying next week, with modest U.S. demand under medium‑speed models.
Treasury yields rose after Fed Chair Powell’s hawkish final FOMC tone; CTAs added UST shorts and held yen shorts despite yen intervention.