CLICK ON CHART TO ENLARGE
Last August much of the talk was about the potential downgrade by S&P of U.S. Government debt and how it would push bond prices a good deal lower. In the short-term did the downgrade push the long bond lower or higher? The above chart reflects a 10 point rally in the long bond took place in short order.
Could the “long expected” down grade in European debt bring about a short-term rally, similar to the one that took place in the long bond last summer?