2023-08-04 05:25:26
Warren Buffett’s Berkshire Hathaway is doing business as usual following Fitch Ratings downgraded the US credit rating.
Buffett told CNBC: “(Berkshire) bought $10 billion in Treasury notes Monday, and we bought $10 billion in Treasury notes last Monday. The only question regarding next Monday is whether we buy 3-term T-bills. “One month or six months, $10 billion. There are some things people don’t have to worry regarding. This is one of them.”
Fitch downgraded the United States’ sovereign credit rating from (AAA) to (AA+) earlier this week, citing the country’s growing deficit and the growing political wrangling in the periodic efforts needed to raise the debt ceiling. The timing was right, as less than 24 hours later, the government ramped up its quarterly borrowing plans for the first time in two-and-a-half years.
While the market’s reaction was slight in the wake of the downgrade, long-term Treasury bonds are preparing for their worst week this year, as the move coincided with the increase in US bond issuance, the Bank of Japan’s adjustment of the policy of controlling the yield curve on domestic bonds, and strong employment data in the states. the United States, which affected the demand for US bonds.
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