Links: Treasury Futures, Downgrade Risk, Marc Faber, Andy Xie, Repo Market, Soros Closes Fund

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U.S. Faces Losing AAA Debt Rating, BlackRock, Loomis Sayles, Templeton Say (Bloomberg)

"BlackRock Inc., Franklin Templeton Investments, Loomis Sayles & Co., Pacific Investment Management Co. and Western Asset Management said the U.S. faces losing its top-level debt rating as officials struggle to raise the $14.3 trillion borrowing limit and reduce spending."

U.S. Downgrade May Cost $100B a Year: JPMorgan (Bloomberg)

"A U.S. credit-rating cut would likely raise the nation’s borrowing costs by increasing Treasury yields by 60 to 70 basis points over the “medium term,” JPMorgan Chase & Co.’s Terry Belton said"

The $1 Billion Armageddon Trade Placed Against the United States (betting on downgrade of AAA (Jack Barnes at Money Morning)

"In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world. The massive trade wasn't placed in bonds themselves; it was placed in the futures market. The trade was for block trades of 5,370 10-year Treasury futures executed at 124-03 and 3,100 Treasury bond futures executed at 125-01. The value of the trade was about $850 million dollars." (betting on downgrade of AAA rating)

Marc Faber: The Debt Fight Is Meaningless, As Governments March Toward Hyperinflation (Business Insider / interview at King World News)

"Well when the reset comes it will be say a hundred dollar bill will be exchanged for a one dollar bill or something like this. Before we have the Great Reset, the government they will increase the war effort under whatever excuse that will be but I think that is the likely course of action..." (he also talks about gold)

Nomura: US Downgrade May Cause Repo Market Liquidity Freeze (Zero Hedge)

Andy Xie: US debt crisis may force China to consider faster diversification in asset allocation (Reuters Insider Video)

Soros to Close His Fund to Outsiders -because of new regulations (NYT Dealbook with Quantum Letter)

India, China, Middle East drive 30pc spike in diamond sales (Australian, WSJ)

Instant view: Durable goods orders fall on transportation (Reuters)

S&P/Case-Shiller Home Price Indices (Report)
China protests against U.S. spy flights near its coast: report (Reuters)

China’s Inflation May Slow to 4% by Year-End, HSBC Says (Bloomberg)

Chart: S&P/Case Shiller Home Price Indices - Year/Year percent Change as of May 2011 (Full report at Standard & Poor's)

Deutsche Bank, UBS Forced to Cut $2.2 Billion CMBS Offering as Yields Rise (Bloomberg)

*Nomura chart showing "Average Sovereign Debt Reactions (10-year yield) to S&P Downgrades From AAA" (Stone Street Advisors)

Treasurys Hurt By Debt Impasse, 5-Year Auction (WSJ)

Rick Santelli Gives 5Y Treasury Auction "C-" (Benzinga)

Spread Between July 28 And August 4 Bills Hits 12 Bps, Widest Ever On Default Risk (Zero Hedge)

August 4 T-Bills Selling Off (WSJ MarketBeat)

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