Tuesday, April 22, 2014

Treasuries Are the Surprise Year to Date Winner

When the Fed announced an end to the quantitative easing program, the treasury market sold off.  The reason is simple: the largest buyer of treasuries had announced they were leaving the market.  However, since January 1, treasuries have outperformed the market as a whole.

When we compare long treasuries, SPYs, commodities (DBC) and the dollar (UUP) since January 1, treasuries again outperform.