The Timing of this Debt Downgrade is Not Good for the Treasury Market.

Long-term yields are on the cusp of signaling an important change in trend

• The Moody’s downgrade of the US debt was not a shocking development, but it’s not what the Treasury market needed…given that it’s on the cusp of signaling an important change in trend for long-term interest rates.

• With this new-news coming at a time when the stock market is overbought and overvalued, any pullback could/should last for more than just a couple of days.