Quote:
Originally Posted by Cowboy89
Spain got put on watch for a downgrade today, so even a downgraded US rating of AA would seem less risky in comparison, so there must be some funds flowing into Treasuries from that. The USD is up today too. As for the 3 Month, LIBOR is spiking a little as banks are more concerned about each other as counterparties than the US government. As a result there might be some money moving into 90-day T-bills as a result to overcompensate for the risk of a US default.
Not really sure, but just my guess from looking at what's going on.
|
I'd would also guess that at the moment investors are using up all the other AAA places to put their money, at some point in time they have to go back to the US and assess what that risk is worth.