Investors Don’t Plan to Shift Treasury or Agency Holdings, Jefferies Says

Jefferies & Co. said most of its customers have no plans to change their holdings of Treasuries or agency debt after Standard & Poor’s downgraded the U.S. credit rating.

“We are skeptical that the downgrade will be a big deal 24 hours from now,” Ward McCarthy and Thomas Simons, economists for the company in New York, wrote in a report to clients.

Still, agency yields are likely to rise compared with Treasury rates as a result of the downgrade, the economists said.

To contact the editor responsible for this story: Nicholas Reynolds at nreynolds2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.