“It is the irony of the downgrade,” says Lou Crandall at Wrightson Icap. “What do you do if the US is downgraded? The answer is, buy more Treasuries.” Two and three-year Treasuries hit record lows of .23 and .48 percent. 10-year notes fell to 2.33%, their lowest yield since January 2009.
Do we really close this loop by asserting that the downgrade caused the sell off?
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