US Treasuries – 4 trading days on and rates look rosy?

Today’s brief commentary piece tracks the US Treasury Yield curve of 5 August 2011 (before the Standard & Poor’s downgrade announcement) and the closing rate on 10 August 2011.

As can be observed, across the board, the T-Bill yields of 10 August are lower than on 5 August 2011.

 

It begs the question:

Is a ratings agency downgrade actually good for business?

The table below reinforces the point:

At least the volatility we have been observing in the stock markets of late, has not yet manifested itself in the capital markets.  How long can this continue?

theMarketSoul ©2011

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