Moodys downgraded US credit rating
Digest more
Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.
Yields in the Treasury market are rising, threatening to make it more expensive for consumers and the U.S. to manage debt.
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.
Moody's cut its credit rating on US Treasury bonds, but wealth managers don't seem to be overly concerned - at least not yet.
Asian shares fell Monday and U.S. futures and the dollar weakened after Moody’sRatings downgraded the sovereign credit rating for the United States because of its failure to stem a rising tide of 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.
Stocks and US government bond prices at first fell sharply early in Monday’s trading, but they trimmed their losses as the day progressed.