Moody's downgraded the United Sates' credit rating for the first time in history citing unsustainable path for US federal debt and its resulting interest burden. - United States | News & Politics - the/brain/bin
Usually when credit ratings fall, fixed-income security yields rise…
The 10-year Treasury bond yield has risen roughly 0.3 percentage points this month to around 4.5 percent. The 30-year Treasury yield briefly crossed 5 percent this week; the last time it did that, during some of the worst tariff fears, Mr. Trump cited the bond market among reasons he pared back his tariff proposals.
It’s a sign that the government could end up paying a higher interest rate on its debt if it can’t soothe investors’ concerns over its mounting debt, a development that could snowball into a full-blown debt crisis for the world’s largest economy.
Moody’s announced the downgrade just before bond markets closed on Friday, so investors will have to wait until Sunday to respond.
