On Aug 9, 2011, at 5:20 PM, ken hanly wrote:
> Why is it that when the U.S. dollar is downgraded US treasury bond yields decline. Why does not the yield go up and borrowing become more expensive when the risk increases?
Japan's been downgraded several times in the last 10-15 years, and its 10-year rate is 1.1%, half that of the U.S. The ratings are meaningless.
Doug