I don't think it has anything to do with Moody's rating. The
downgrade is well expected and no one wants to buy the US treasury but couldn't buy as a result of the downgrade.
No one wants the longer dated government bond because the term premia remains slightly negative, moreover, people may question the administration's willingness to put the inflation under control. Indeed, the US Fed focuses on inflation.
20-Year Treasury Auction Goes Badly, Yields Spike as Bonds Sell Off.
story with which we are familair with.
The sword of Damocles remains, which may, at any time, move the needle. The US is facing a fiscal cliff but no one knows what to do about it.
world. You can check the yield of German and Japanese long term bonds.
It is not funny at all.
downgrade is well expected and no one wants to buy the US treasury but couldn't buy as a result of the downgrade.
No one wants the longer dated government bond because the term premia remains slightly negative, moreover, people may question the administration's willingness to put the inflation under control. Indeed, the US Fed focuses on inflation.
lessening the exposure to USD denominated assets is a long term trend.
it is going to work though.
为了全人类的幸福， 美债一定不会真正崩盘。
再进一步， 真到了天崩地裂的那天，我肯定会买。