>So here's one for you. If your reasoning is correct I would've expected to see treasuries down (which indeed was the case Friday). Instead they went up. How do

>So here's one for you. If your reasoning is correct I would've expected to see treasuries down (which indeed was the case Friday). Instead they went up. How do you explain that? Treasuries become risk aversion vehicles during large equity sell-offs. Whatever downward pressure was put on them for a hypothetical rate raise was dwarfed by the fear driven movement from stocks into bonds. Why into US treasuries you might ask. It's because they are a nearly risk-free way of parking money at a better rate than the money market while maintaining good enough liquidity to easy sell back out of the position.