The uncertain global outlook and the heavy blow to global stocks on Thursday pushed investors to the relative safety of U.S. dollar and Treasury exchange traded funds (ETFs).

Powershares DB US Dollar Bullish Fund (NYSEArca: UUP) was up 1.00% at last check; the fund has recently crossed its 200-day EMA. The iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT) was up 3.49%.

“A big-time asset allocation trade is going on which seeks the safety of U.S. dollar fixed-income Treasury product,” Chris Rupkey, managing director and chief financial economist at Bank of Tokyo-Mitsubishi UFJ, commented, reports Ellen Freilich for Reuters.

Yields on 10-year Treasury notes touched 1.76%, a 60-year low, earlier during the day. [Long-Term Treasury ETFs Jump On Fed’s $400 Billion Move]

“Investors know the Fed will be buying bonds so they think Treasuries are a safe haven,” Gary Thayer, chief macro strategist at Wells Fargo Advisors, remarked.

Treasuries have been extending the previous day’s gains after the Fed announced its $400 billion purchase of long-term debt and central bank’s comment of “significant” risks to the economy. [Global Stock, ETF Sell-Off On Recessionary Fears]

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