Moving into U.S. Treasuries is a standard move when the markets go volatile. Yesterday, there were a few differences. Investors moved out of high-yield (or “junk bonds”) on fears of defaults.

Money managers piled into bonds on anticipation of heavy redemption demands from investors spooked by the Reserve Primary Fund’s breaking the buck.

Among Treasuries investors are moving to include:

  • iShares Lehman 1-3 Year Treasury Bond (SHY)
  • iShares Lehman 10-20 Year Treasury Bond (TLH)
  • iShares Lehman Credit Bond Fund (CFT)
  • iShares Lehman TIPS Bond (TIP)

For full disclosure, some of Tom Lydon’s clients own shares of SHY and TIP.