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

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

For all the handwringing over the credit-rating cut, bondinvestors from Wall Street banks that trade directly with theFederal Reserve to policy makers in China and Russia are likely toretain their holding of Treasuries as they see few alternatives tothe world's deepest and most liquid market. The dollar remains theworld's reserve currency even as S&P cut the U.S. one level toAA+ while keeping the outlook at “negative” on Aug. 5, citing thepolitical failure to reduce record deficits while Moody's InvestorsService and Fitch Ratings affirmed their AAA credit ratings for theU.S. on Aug. 2.

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