With the ongoing cavalcade of White House drama, the boring #MoodysDowngrade to US debt didn’t get much play beyond the business pages. Market realities are colliding with the fiscal fantasy that is the Trump #budget bill larded up with giveaways for #billionaires

A price will be paid

#USPolitics

30-year Treasury yield spikes to 5.08%, 10-year yield hits 4.59% as GOP bill raises deficit concerns U.S. Treasury yields ticked higher on Wednesday as investors closely monitored discussions on the budget bill and federal deficit.

#TreasuryYields moved back to levels that have pressured the economy and financial markets in the past as investors feared a new U.S. tax bill could worsen the country’s budget deficit, a risk highlighted in a #MoodysDowngrade of the U.S. credit rating to end last week.

#BudgetDeficit #CNBC

What Moody's U.S. Credit Downgrade Means for Your Wallet Higher mortgage rates? Steeper inflation? Here's how the U.S. credit rating decrease could affect you.

Moody’s decision to join other major ratings agencies in downgrading the U.S.’s once-pristine credit rating could have a tangible impact on Americans’ wallets. 

#MoodysDowngrade #USEconomy #InterestRates #TimeMagazine

Moody’s downgrade ripples through bond market, causes worries for stocks By Davide Barbuscia and Lewis Krauskopf NEW YORK (Reuters) -Moody’s U.S. debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields to put pressure on stocks that are trading at elevated valuations. Moody’s decision to downgrade the U.S. debt rating by a notch late last week due to mounting government debt and rising interest expenses has rekindled fears of a broader investor reappraisal of U.S. sovereign debt, which could drive up borrowing costs across the economy. "Every time something like this happens, investors just think maybe they should shift a little more out of the U.S.," said Campe Goodman, fixed-income portfolio manager at Wellington Management Company. Benchmark 10-year yields, which influence mortgage rates as well as borrowing costs for companies and consumers, rose to over 4.5% early on Monday but the selloff then moderated. Yields move inversely to prices. On Tuesday, the bond market selloff continued, with the 10-year yield last seen at 4.48%, slightly above where it closed on Monday. Longer-dated 30-year yields rose more sharply, hitting a high of over 5% on Monday, the highest since November 2023, and flirting with that level again on Tuesday. Higher yields have repercussions for stocks, analysts and investors say, as they represent higher borrowing costs for companies as well as greater investment competition from fixed income. Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, said a rise in 10-year yields beyond 4.5% could be a headwind for stocks. "I think what markets are grappling with, is if the 30-year is breaking out, does that mean the rest of the curve is next?" Miskin said. Over the past few years, stocks have come under pressure during some instances when Treasury yields moved above 4.5%, with sharply rising yields often negatively correlated with stock performance. One prominent example is late 2023 when the S&P 500 slid sharply as the 10-year yield ascended to 5%. In a note on Monday, Morgan Stanley equity strategist Michael Wilson said 4.5% on the 10-year yield has been "an important level" for equity market valuation over the past two years, with stocks tending to face valuation pressure when 10-year yields breach that threshold. The price-to-earnings ratio for the S&P 500, based on earnings estimates for the next 12 months, was at 21.7 as of Monday, well above its long-term average of 15.8, according to LSEG Datastream. Wilson, however, said while a break above 4.5% in the 10-year yield "can lead to modest valuation compression ... we would be buyers of such a dip," he said in the note, citing the recent U.S.-China trade truce as positive for equity markets. The downgrade has come as Republicans in Congress seek to approve a sweeping package of tax cuts aimed at boosting economic growth that at the same time could add trillions to the $36 trillion U.S. public debt pile, exacerbating concerns highlighted by Moody’s over the U.S. fiscal trajectory. It also follows a detente in the trade war sparked by President Donald Trump’s imposition of tariffs on U.S. trade partners. While tariffs are largely seen as being a drag for the economy, a recent trade breakthrough with China had sparked market optimism that their impact would be more muted than feared. "You move from fears of stagflation, which was low growth and tariff-led inflation, to a better growth backdrop but probably not a better inflation or fiscal backdrop, as you still have this big tax bill getting pushed through," said Ross Mayfield, investment strategist at Baird. Federal Reserve officials on Monday said the Moody’s downgrade could have repercussions for the U.S. economy by raising the cost of capital. The ratings cut was unlikely to trigger forced selling of Treasuries, as major fixed-income indices only require securities to maintain an investment-grade rating or have no specific sovereign rating guidelines, analysts at BofA Securities said in a note on Monday. Still, it could cause the yield curve to steepen, they said, with long-dated yields rising due to worsening investor sentiment around the long-term prospects of U.S. debt. "There could be a time when the bond market gets quite worried that we’re continuing to stimulate an economy that’s not weak," Goodman said.

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Moody's downgrade ripples through bond market, causes worries for stocks - Reuters Moody's downgrade ripples through bond market, causes worries for stocks  Reuters

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Investors shrug off Moody's downgrade as stocks, U.S. borrowing costs stay largely flat - NBC News Investors shrug off Moody's downgrade as stocks, U.S. borrowing costs stay largely flat  NBC News

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Markets Rattled on Concerns About U.S. Debt

#Markets Rattled on Concerns About U.S. #Debt. Stocks fell, the dollar slipped and bond yields jumped after a #moodysdowngrade highlighted worries about the cost of #Trump’s policies and the health of the #economy. www.nytimes.com/2025/05/19/b...

As Moody’s Downgrade, Bostic Comments Weigh on Stocks, We're Eyeing This Holding - TheStreet Pro As Moody’s Downgrade, Bostic Comments Weigh on Stocks, We're Eyeing This Holding  TheStreet Pro

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Stock Market Today: Dow Futures Fall, Dollar Slips After Moody's U.S. Downgrade — Live Updates Trump’s tariffs and trade deals continue to affect global markets. Follow along for live updates on the Dow, S&P 500 and Nasdaq.

The “Sell America” trade looks like it’s back. Stock futures are sinking, after Moody's Ratings downgraded the U.S. and a tax bill that would worsen the country's fiscal picture passed a key hurdle.

#MarketInstability #MoodysDowngrade #WallStreetJournal

Moody’s just downgraded U.S. debt.
Does it really matter?
Catch #TheRealInvestmentShow w Lance Roberts starting at 6:06a CDT on KSEV AM 700, and streaming-live on YouTube:
www.youtube.com/c/TheRealInv...
#MoodysDowngrade #CreditRating #DebtCrisis

China asks US to maintain stability of international financial system after Moody’s downgrade A Chinese foreign ministry spokesperson made the comments at a daily press briefing when asked about Moody’s downgrade of the U.S. sovereign credit rating due to concerns about the nation’s growing debt pile.

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#ProvenGOPLie "TrickleDown" AKA #TaxCuts Pay for themselves😡 and to others that #MoodysDowngrade is PresBiden's FAULT= #LIES! NationalDebt is #AccumulationsOfPastYearlyDEFICITS And the #Deficit is the Annual #DifferenceBtwnGovSpending&Revenue. PresBiden Lowered Both #NationalDebt & #AnnualDeficit;

Analysis-Moody’s downgrade intensifies investor worry about US fiscal path Blog Mobile Portfolio Widgets About Us Advertise Help & Support Authors Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

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Moody's downgrade of US rating may not dent stock markets much: Analysts - Business Standard Moody's downgrade of US rating may not dent stock markets much: Analysts  Business Standard

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Moody’s recent U.S. credit downgrade faces criticism over flawed GDP and deficit assumptions, ignoring key revenues and economic growth potential. Is the downgrade premature or justified?
Read More: internationalnewss.exblog.jp/33653381/
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