Thursday, July 28, 2011

The Republicans gave investors to 'entertain' a movement away from the US to 'downgrade its reputation' if not its credit rating.


This news is not about the USA bonds, it is about Australian bonds.


While Speaker Boner is soliciting votes for his bill, it is already July 29th and a new trading day in Australia.

Aust bonds climbing on US default fears (click title to entry - thank you)


July 29, 2011 - 9:34AM
...Investors are flocking to the relative safety of Australian bonds, amid a looming August 2 deadline which could see the US default on its loans, should its debt limit not be raised by the government.
At 0830 AEST on Friday, the September 10-year bond futures contract was trading at 95.110 (implying a yield of 4.890 per cent), up from 95.090 (4.910 per cent) on Thursday.
The September three-year bond futures contract was at 95.490 (4.510 per cent), up from 95.480 (4.520 per cent).

By 0915 AEST, bonds had risen further with the 10-year contract reaching 95.145 (4.855 per cent) and the three-year contract at 95.530 (4.470 per cent)....

..."Even though that might involve an eventual (credit rating) downgrade of the US, I think everyone's more concerned about what that might mean for global market sentiment."...