• Why would investors buy US Treasuries just days ahead of a Fed rates rise?

    Investors continue buying US Treasuries. Why would they do this knowing that the Fed is going to raise interest rates next week?





    Higher US/German and US/Japanese rates differentials explain most of this rush into US Treasuries.





    Friday, the 20DMF was rather bearish all day long.



    The NQ8 sector as well as semiconductors produced a short signal on Friday.
    In all honesty, this negativity could also be due to options expirations and the S&P500 rebalancing.





    Conclusions:

    I do not believe that there is much to gain to be made into being long US equities markets here.
    I am however still long US Treasuries. I believe that the Fed will not offer hawkish guidance on Wednesday as trade issues get more serious. Hence, I suspect that there will be a buying rush on US Treasuries this coming week.