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Notwithstanding the rating cut, Treasuries are still deemed safe.
Investors surveyed by Ried, Thunberg cut Treasuries to 21percentt of portfolios from 23percentt, and increased corporate bonds to 36percentt from 35percentt -- the most since mid-August.
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According to statistics from U.S. Treasury Department, China cut U.S. treasury holdings in 2014 by $25.8 billion.
(See: "Wall Street Wants Cuts, Buys Treasuries").
If this is so, then it highlights the concern that flows from the fact that the cuts are Treasury-driven, not justice-driven.
Doubts about how much more aggressively the Fed will cut rates punished Treasuries late last week.
The checks--cut from corporate treasuries, not granted by individuals--were deposited into the account of the dark money group Wisconsin Club for Growth, which prosecutors viewed as a "subcommittee" of Walker's campaign in violation of the statutes (11.10 (04)) as they were written at the time. .
First he cut his investment in Treasuries from 20% of his portfolio to zero.
The current system may crash down sooner than we think, depending on the outcome of an antitrust suit in the name of former U.C.L.A. star Ed O'Bannon, in which thousands of former college athletes are demanding a cut of the huge treasury of wealth that they helped create.
Still, rates are likely to decline substantially as the recession deepens, the Fed again cuts short-term rates, Treasuries become even more of a safe haven and deflation again becomes a widespread concern.
One option – enticing for recession-hit treasuries – is to cut it back.
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CEO of Professional Science Editing for Scientists @ prosciediting.com