There is a rumor running in the markets that credit rating agency S&P is set to downgrade the US and strip it from the perfect AAA rating. This will have implications on the greenback. US yields are higher, and the dollar is weaker, but there are other reasons for a weak dollar. Talk about a possible move by S&P appears on the twitter page of Ben White. H/T :FT Alphaville which mention the yields. If this materializes, it won’t come as a big surprise, as S&P has warned about it, and even specified the conditions necessary to avoid it: a program to cut debt by 4 trillion dollars. The deal’s scope is only a little more ... (full story)