Treasury Slide May Be Short-Lived

U.S. downgrade likely to be offset by EU debt crisis, slower growth.

Any selloff in Treasuries and the dollar following Standard & Poor’s first ever downgrade of the U.S. from AAA is likely to be short-lived amid slowing economic growth and Europe’s debt crisis, according to Wall Street banks.

JPMorgan Chase & Co. said a drop in Treasuries from the ratings cut is unlikely to be “sustained,” while Citigroup Inc. said dollar selling isn’t forecast to be entrenched. Barclays Plc said the downgrade shouldn’t be “significant,” and UBS AG said the top ranking for U.S. short-term debt will prevent money funds from being forced to react.

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