NEW YORK (CNNfn) - U.S. fund managers have been getting off the sidelines to buy stocks and bonds, a reversal from a month ago when they were holding cash in anticipation of interest-rate hikes, according to a new survey released Tuesday.
The monthly survey by Merrill Lynch showed that global money managers also are becoming "strong buyers" of stocks and bonds.
"Fund managers are much more optimistic about a global soft landing," the survey said. "They have turned strong buyers of stocks and bonds in a major reversal of last month's negative sentiment."
 In the United States, managers have been shifting their interest from defensive and value stocks in favor of technology and financials, the survey found. Last month, managers were raising record levels of cash.
Still, analysts at Merrill Lynch showed some concerns about the movement back into technology.
"We feel less comfortable with the aggressive move back into tech," the survey found. "Given the equity wealth effect, a strong Nasdaq rebound could re-ignite consumer spending and Fed rate hikes."
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Only 15 percent of U.S. managers said they think inflation will rise, down from 57 percent in October 1999. Managers also said they think the Fed funds rate will remain at 6.5 percent a year from now.
Buyers of U.S. Treasurys also outnumbered sellers by the greatest margin since September 1998.
In European sectors, managers are favoring bond-sensitive banks and insurance over resource and basic industry stocks.
"Managers plan to buy U.K., European and U.S. stocks."
--Merrill Lynch manager survey
"Hopes of a peak in U.S. and U.K. interest rates have triggered renewed buying interest for equities," the survey said. "Managers plan to buy U.K., European and U.S. stocks."
The euro also gained record new support, with 75 percent of managers predicting it would be the strongest currency over the next year, according to the survey.
Merrill Lynch interviewed about 250 managers between June 2 and June 8 for the survey. 
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