Treasury Bill yields were negative for a while last week when this downgrade was expected - I think the downgrade will be a non-event. The downgrade itself doesn't make it any more likely the US will default. Effect on interest rates here - probably none i would think unless the dollar falls dramatically, then the ECB would presumably cut rates (unlikely to be a major dollar reaction - I'd say this was already partially priced in)
Treasury Bill yields were negative for a while last week when this downgrade was expected - I think the downgrade will be a non-event. The downgrade itself doesn't make it any more likely the US will default. Effect on interest rates here - probably none i would think unless the dollar falls dramatically, then the ECB would presumably cut rates (unlikely to be a major dollar reaction - I'd say this was already partially priced in)