reuters.com
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  • davel@lemmy.mlEnglish
    3·
    13 days ago

    Usually when credit ratings fall, fixed-income security yields rise…

    http://archive.today/2025.05.17-052540/https://www.nytimes.com/2025/05/16/business/us-credit-downgrade-moodys.html

    The 10-year Treasury bond yield has risen roughly 0.3 percentage points this month to around 4.5 percent. The 30-year Treasury yield briefly crossed 5 percent this week; the last time it did that, during some of the worst tariff fears, Mr. Trump cited the bond market among reasons he pared back his tariff proposals.

    It’s a sign that the government could end up paying a higher interest rate on its debt if it can’t soothe investors’ concerns over its mounting debt, a development that could snowball into a full-blown debt crisis for the world’s largest economy.

    Moody’s announced the downgrade just before bond markets closed on Friday, so investors will have to wait until Sunday to respond.

    • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOPM
      51·
      13 days ago

      I mean it’s not like all these problems just magically appeared in the past few months. The proxy war Biden’s been running over the past three years certainly played a role here.