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
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