Analysts are now warning of treasury’s and stocks. The stocks have been on an emotional ride during recent times, carrying forward lots of gains. However, during the recent few days, the stocks have taken a tumble.
According to analyst reports, the bout of selling the stocks and bonds has persisted and it is going to continue. Analyst Jason Ambrose said that there aren’t many people out there who are not looking to get the treasury bonds. It seems every body is after them, said Ambrose, warning potential buyers and sellers.
After a recent tumble in stock markets that continued for three days, analysts are now warning that more people will sell stocks in the coming months, as treasury prices suffer a hammering. The stock decline has been attributed to high inflation fears.
In other news, on Monday, the Dow Jones industrial average declined by 1175.21 points, closing at 24345.75. The index dropped by 1500 points in the session. Moreover, after Tuesday’s opening bell, Dow dropped by 250 points, increasing its 3 day losses over 2000 points. Just 30 minutes in, the Dow removed all those losses, sitting at 300 points higher.
Vanda Securities CEO, Jason Ambrose said that a recent flight and move back to treasury doesn’t entail a twin sell off in equities or bonds are over. He said that this is a temporary move. He also said that the US treasury will be and can take severe hammering in the coming months.
Currently, he said, the demand for treasury’s is weak and they could take a further blow when people sell them out. Moreover, higher supply and lower demand could again mean that the price of the treasury will decrease. Nonetheless, nothing for now is in favor of the treasury’s, which are expected to take a blow in the coming few months.
Markets remain uncertain after posting gains in the last week but maintaining their third day of losses today. Investors and traders seem skeptic about a lot of things and the treasury’s are one of them. These treasury’s are further expected to suffer a blow in the months to come.