(31 March 2020)DAILY MARKET BRIEF 2:Credit markets under the pressure of rating cuts.

<p>The White House on the other hand is discussing additional fiscal aid measures worth $600 billion, on top of the historical $2 trillion rescue package just signed a couple of days ago.</p>
<p>Huge amount of helicopter money sprayed on economies to put a floor under the growth slowdown will have long-term implications for debt levels, not only in the US but everywhere in the world.</p>
<p>Now, many of us are wondering whether the governments can extend their debt ad infinitum. The answer is tricky. The US is better positioned compared to most countries for doing so, given that the US government bonds are considered as the ultimate safe haven and the activity on US treasuries prove that the appetite for the US sovereigns remain solid even with the colossal new debt adding to the countries already high level of debt. The US 10-year yield remains a touch below 0.70%, near historically low levels.</p>