U.S. Treasury yields declined Thursday as investors flocked to bonds – iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) climbed 1.4% before the bell.
In volatility-linked ETFs, iPath S&P VIX Short Term Futures (NYSEArca: VXX) rose 6%.
Morgan Stanley cut its global economic forecasts for 2011 and 2012.
“We still have a lot of questions on the economy,” Guillaume Duchesne, an equity strategist at BGL BNP Paribas, told Bloomberg. “Markets are worried and stocks linked to the economy are strongly penalized.”