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.

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