US Treasury Yields Spike After Moody's Downgrades U.S. Credit Rating
U.S. Treasury yields surged on Monday following Moody's downgrade of the United States' credit rating, citing concerns over the nation's fiscal health.
Key Yield Movements
The 30-year Treasury yield jumped over 10 basis points to 5.021%, while the 10-year yield also increased by 10 basis points to 4.542%. The 2-year Treasury yield rose above 2 basis points, reaching 4%.
Moody's Downgrade
Moody's lowered the U.S.' credit rating from Aaa to Aa1 on Friday, attributing the decision to the growing burden of financing the government's budget deficit and the high costs of refinancing existing debt amid elevated interest rates. According to Moody's, the downgrade reflects the increase in government debt and interest payment ratios over the past decade.
Analyst Commentary
Deutsche Bank analysts described this as a significant symbolic move.
Looking Ahead
Investors are also monitoring speeches from U.S. Federal Reserve officials. Concerns are rising whether Treasurys remain a safe haven asset.
