After a Rating Downgrade, U.S. Treasuries Turn a Profit

By artappraiser on Sun, 10/09/2011 - 5:17pm |

By Floyd Norris, New York Times, October 7/8, 2011

Two months ago, Standard & Poor’s downgraded the bond rating of the United States government. So far, at least, the move has done wonders for investors in the very bonds that the rating agency disparaged.

The rating downgrade, along with continued turmoil in European markets and fears that the United States might be entering a new recession, caused a flight to safety among investors. And, notwithstanding the agency’s opinion, money flooded into Treasuries and the demand for American dollars grew.

Since then, Treasury bonds have been one of the few investments that have produced good profits....

URL:

http://www.nytimes.com/2011/10/08/business/after-a-rating-downgrade-us-treasuries-turn-a-profit.html