For the second straight day, investors seemed to dump their stocks in favor of just about anything else—except, unexpectedly, bonds.
All the major stock indexes—the S&P 500, the Dow Jones industrial average and the Nasdaq composite index—saw their third-straight trading day of selling on Wednesday. Meanwhile, gold climbed nearly 1 percent and the CBOE Volatility Index (the VIX) jumped nearly 2 points to 15.44.
Yet bonds, which often attract money in volatile markets, are strangely flat for the week. What's more, Treasurys sold off throughout the trading day Wednesday and closed at their low for the day. Yields on the benchmark U.S. 10-year Treasury note pushed up to 1.93 percent by market's close. Bond yields move inversely to bond prices.
Many traders were taken aback that bonds sold off on the same day stocks fell precipitously.