Industry News Blog

The anticipated debt downgrade of U.S. debt by S and P occurred after market close last Friday. The result, opposite to what some expected, was no forced selling of U.S. treasuries (the opposite occurred) and renewed potential for an increased period of low interest rates. As of right now, the 10 year treasury yield is 2.080%, down from 2.600% exactly one week ago. Investor psychology is having far more of an impact on the markets than actual fundamentals right now and, until this changes, any major rate increase in the short term isn’t a risk.  (Piedmont Capital Market Update Email, August 10th, 2011)