I have been trying to understand what typically happens to US Treasury bonds during a period like this. A rational train of thought would be that the interest rates on them should continue to go up as the Fed continues to hike rates.
However, assuming a fairly significant stock market crash is on the horizon, doesn't that mean that many investors will look for a "safe haven" and put pressure on demand on them causing the price to go up (and also making the effective interest rate lower)? Which force wins?
However, assuming a fairly significant stock market crash is on the horizon, doesn't that mean that many investors will look for a "safe haven" and put pressure on demand on them causing the price to go up (and also making the effective interest rate lower)? Which force wins?