Global markets are in chaos.
Major global stock markets were sharply lower on Thursday, headlined by a plunge in Europe with US futures also deep in the red.
But under the surface of the headline stock collapses, three big "risk-off" trades stand out:
- The Japanese yen is surging
- US Treasurys are rallying
- Gold is spiking
The basic outline here is that betting on yen appreciation is popular during periods of heightened uncertainty.
US Treasurys, considered the safest place investors can park their money, and gold, which is a traditional "end of the world" trade, are also often bought up aggressively by investors in times of stress.
The yen strengthened to 110.99 against the dollar earlier in the morning before weakening back to about 112.25 around 9:35 a.m ET. However, recent strength has the yen back at 112.05 at 11:20 a.m. ET. This is the strongest the Japanese currency has been since October 2014.
US Treasurys are seeing a huge bid. The benchmark 10-year yield note is at 1.61% around 9:35 a.m. ET, after a hitting a low of 1.53% earlier this morning. Now, the yield has drifted back towards the lows, and currently sits at 1.57%.
The 10-year yield most recently touched this level back in December 2012. The record low of 1.39%, hit back in July 2012, is now within sight.
Gold futures are up a whopping $56.00 an ounce, hitting a high of $1,251.10 at around 11:15 a.m. ET.
This is the highest level for the metal in about a year.
Get the latest Gold price here.
