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Still, rates have remained stable on longer-term debt, like the benchmark 10-year Treasury note. That shows that investors remain confident in longer-term Treasurys. The rate on the 10-year note is important because it affects rates on mortgages and many other loans. Jack Ablin, chief investment officer at BMO Private Bank, said Fitch's warning was no surprise. "Creditworthiness is a function of two thing: ability and willingness," Ablin said. "No one is questioning our ability. But there is uncertainty about our willingness to pay." After S&P downgraded long-term U.S. credit two years ago, investors sold stocks but continued to buy longer-term U.S. Treasurys. Many analysts say further downgrades to the U.S. credit rating would likely have little effect on bond investors. That's because Treasurys are the most transparent and widely traded security in the world. Rating agencies have little information to assess that isn't already available to most investors. Julian Brigden of Macro Intelligence 2 Partners, an investment consultancy, said Treasury investors may shrug off Fitch's warning, which could get lost amid Washington's budget impasse. "It's just one more negative in the mix of news," Brigden said. The U.S. government has never intentionally failed to pay its debts. That's why investors consider Treasurys the safest investments in times of uncertainty. Treasurys are also denominated in dollars, the main currency used by central banks and financial institutions around the world. Late Tuesday, House Republicans pushed for passage of legislation that would allow the Treasury to borrow normally until early February and end a 15-day partial government shutdown at least until Dec. 15. While the House readied for a possible Tuesday night vote, the immediate result was to impose a daylong freeze on Senate negotiations on a bipartisan compromise.
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