Kucinich demanding information on S&P financials

by Peter Schroeder - 08/09/11 7:58 PM ET

{mosads}Many speculated the unprecedented downgrade by S&P of the nation’s credit rating could lead to a spike in interest for Treasury bonds, as investors would demand more interest in exchange for the now riskier investment.

However, in the market turmoil following the downgrade, the opposite has actually happened. Treasury bonds have gotten cheaper, as investors still are turning to the traditionally risk-free investment in search of a safe haven.

And the Fed’s announcement that it would be keeping interest rates near zero for at least two more years further drove down yields on Treasury bonds.

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