Tuesday, February 19, 2008

Investors Don't Want U.S. Treasuries


These three charts represent some of the most liquid ETFs for U.S. Treasuries. They are being sold, even though the Fed is promising lower interest rates. Bond prices move inversely to interest rates, so the selling on these charts indicates that interest rates are rising. So what are investors buying instead?

Commodities, including gold, energies, and agricultural commodities.