Any insights on why treasury futures and bond rallying at the same time?

[kasujichan]

Hi all,

From my understanding there should be a negative correlation between the equity market and the bond price. However, the s&p are on records high and bond prices for 30 years are at the 157 level which really puzzles me.

Regards

 

[just21]

The bond market thinks the fed will not raise as quickly as they indicated. Lower rates than expected is bullish for stocks.

 

[algofy]

Hi all,

From my understanding there should be a negative correlation between the equity market and the bond price. However, the s&p are on records high and bond prices for 30 years are at the 157 level which really puzzles me.

Regards

Correlations don't always equal out as expected for many reasons.

 

[Martinghoul]

The negative correlation is a myth...

In certain regimes, there's a negative correlation, while in others, there ain't.

 

[doggyfx]

Hi all,

From my understanding there should be a negative correlation between the equity market and the bond price. However, the s&p are on records high and bond prices for 30 years are at the 157 level which really puzzles me.

Regards

Its all about the Fed I guess. inflation expectations subside as the economy show signs of slowdown, now bullish Fed may soon turn cautious. And inflation does have stable inverse relation with bond prices. Stock market has another valuation theory while low inflation also contributes to its future payments worth.