Moody’s announced Friday evening it was downgrading the US to Aa1 from Aaa, reinforcing Wall Street’s growing worries over the nation’s fiscal outlook as Capitol Hill debates even more unfunded tax cuts. The company, which trailed rivals, blamed successive presidents and congressional lawmakers for a ballooning budget deficit it said showed little sign of narrowing.
Long-dated Treasuries fell on Monday as investor attention turned to the US’s ballooning debt after Moody’s Ratings stripped the nation of its last top credit rating.
The 30-year yield rose as much as eight basis points to 5.02%, the highest since November 2023. The benchmark 10-year rate climbed seven basis points to 4.55%. The dollar fell against all of its Group-of-10 peers, with the euro surging 1% to US$1.1274 ($1.46).
