Warren Buffett Remains Bullish on Treasuries Despite Fitch Downgrade

Warren Buffett's Berkshire Hathaway continues to buy US Treasuries despite Fitch Ratings' recent downgrade of the US credit rating. Buffett stated that Berkshire bought $10 billion in Treasuries last Monday and plans to buy another $10 billion next Monday. Fitch downgraded the US sovereign rating due to the nation's growing deficit and political brinkmanship surrounding the debt ceiling. While long-maturity Treasuries are experiencing a challenging week, short-maturity Treasuries have seen strong demand. In contrast, Bill Ackman, founder of Pershing Square Capital Management, has taken a short position on 30-year Treasuries as a hedge against higher long-term rates and as a standalone bet.