Strange Action In Treasuries

It is quite strange to see treasuries down over the past two days, with the market down as well. As I wrote earlier it is important for interest rates and commodities to correct with the market. Commodities are doing their part but interest rates are stubbornly higher. It could be that too many hedged their long equity exposure with long treasuries and are now bleeding from both ends. Regardless of the reason the bulls would like to see this reverse soon as higher rates are a headwind.

1 comment:

Anonymous said...

Treasuries and stocks move the same direction when bond traders believe we are inflationary environment. Treasuries and stocks have moved inversely past several years because bond traders believed wed were in a deflationary environment. Something changed.