Treasuries

[darkhorse70]

Hey, does anyone know why people keep piling in onto treasuries. I understand the whole risk scenario, hence get into safe havens. The whole matter is slightly confusing, especially when you start speaking about future treasuries and actual treasuries. One works in yields, the other in price.

Im more specifically talking about the latest actions. I.e, future treasuries peaked half way in February. That was when oil was tanking and the equities. So now were starting to get a reversal in CL and equities and treasuries have been selling off in the futures and yeilds increasing in the actual Treasuries. In the last few days, weve seen it start to reverse again and head back up.

Obviously oil has sold off a bit in the last few days but equities are going back up. Is this type of action in the treasuries a fundamental play or just pure value? Or we assuming global risk could still be rising? At what point would the yield completely just disappear making the idea of investing in treasuries pointless?

PS im talking about US Treasuries in particular. Not sure what other world bonds are doing but anyone with more knowledge could shed some further insight.

 

[darkhorse70]

Im also curious about market correlations. I.e, 2 nights ago after Yellen's speech, both equities and treasuries went up. A clear lack of respect for correlation. Makes sense though with the implications of her speech but I guess having a better understanding of fundamental context will allow for better understanding of dislocation between markets. This allows me to either disregard conflicting information or heed to it.