Moodys Downgrades U.S. Rating
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For most sovereigns, the two debt burden metrics and the two debt affordability metrics are equally weighted. But because the US is a reserve currency issuer, Moody’s tweaks the weights on its scorecard so that the Debt Burden sub-factors each attract a 5 per cent weight, and each Debt Affordability sub-factor attracts a 45 per cent weight.
If the U.S.’s loss of its final perfect credit rating boosts yields on Treasury debt, it likely would boost the cost of borrowing for both companies and consumers.
Asian stocks rose on Tuesday while U.S. Treasury yields steadied allowing a bit of a breathing room for the U.S. dollar as investors took stock of the debt load of the world's biggest economy and awaited trade deals.
Though little is known about Deimos, another European spacecraft recently captured unprecedented views of the moon's far side. The Hera mission, which will study the asteroid NASA intentionally crashed into three years ago, flew by the Red Planet on March 12, just 11 days after the rover looked up.
For a minute there, it looked like the “Sell America” trade was poised to make a comeback on Monday after Moody’s decided to strip the U.S. of its top-tier credit rating late Friday.
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Investors largely shrugged off a downgrade of the U.S.'s credit rating in Monday trading as stocks ended the day mostly flat.
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Treasury yield traded above 5%, on pace for the highest settle since 2023, and the 10-year was at its highest since February as a potential widening of the deficit in the GOP tax plan follows Moody’s downgrade.