Moodys downgraded US credit rating
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2don MSN
HONG KONG (AP) — Global shares fell Monday and U.S. futures and the dollar also weakened after Moody’s Ratings downgraded the sovereign credit rating for the United States because of its failure to stem a rising tide of debt.
Yields in the Treasury market are rising, threatening to make it more expensive for consumers and the U.S. to manage debt.
The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.
12hon MSN
A sell-off in global bonds is accelerating as Moody's downgrade of U.S. credit rating and President Donald Trump's tax bill has brought to fore investors' fiscal concerns globally.
The debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields.
Moody's downgrade of the U.S. sovereign credit rating late Friday appeared to have a modest impact on corporate bond market activity on Monday, as spreads widened slightly and new bond sales started the week softer than expected.