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The US Treasury gives on Monday after Moody’s lowered the US credit rating, citing financial problems.
At 4:46 am, 30-year-old treasury The yield increased more than 10 basic points to 5.021%. A A 10-year yield Also increased by 10 basic points to reach 4.542%. Meanwhile, 2-year-old treasury The yield has grown more than 2 basic points, reaching 4%.
One base point is equivalent to 0.01%, and the yield and prices are moving in different directions.
Concerns of investors installed after the rating agency Moody’s reduced US credit rating On Friday, firing it down from AAA – the highest score – to AA1. The agency attributed a decrease in the load on the funding of the government’s budget deficit, as well as the high cost of movement on existing debt against the background of high interest rates.
“This one-time decrease on our 21-class rating scale reflects an increase in government debt and interest rates to levels that are much higher than the same sovereigns,” the statement said.
Moody’s assigned a “ceiling rating in the country” since 1949. It now corresponds to all major credit rating agencies that continue to give the US its second highest rating.
“This is the main symbolic step because Moody’s was the last rating agencies in the US in the highest ranking,” Deutsche Bank Analytts notes.
In April, Treasury jumped out After US President Donald Trump has implemented sweeping “mutual tariffs” on international trading partners. Concerns about tariffs and debt in the US raises questions about whether the treasures remain.
On Monday, investors will also follow the performances of the US Central Bank officials, including the President of the Atlanta Federal Reserve Rafael Bostik, the Fed President in New Yarn John Williams and President Dallas Logan.
