US EditionGov’t Debt Yields Mixed as US Downgrade Roils Bond Markets - BusinessWorld Online
- Moody's downgraded the US credit rating from Aaa to Aa1 in May 2025, triggering mixed yields in government securities markets.
- The downgrade reflects growing government debt, rising interest costs, and a large fiscal deficit driven by falling tax revenue and increased spending.
- Investors' reactions included higher yields on mid- and long-term Treasury bonds, weaker demand at a 20-year bond auction, and renewed concerns about inflation and tariffs.
- Yields on 10-year bonds rose by 9.61 basis points to 6.2693%, while 30-year yields surpassed 5%, the highest since late 2023, impacting borrowing costs economy-wide.
- The downgrade raises expectations for higher borrowing costs and inflation, with bond markets likely imposing limits on deficit spending given the absence of political will to curb it.
16 Articles
16 Articles
Gov’t debt yields mixed as US downgrade roils bond markets - BusinessWorld Online
YIELDS on government securities (GS) traded in the secondary market ended mixed last week as investors repositioned in the aftermath of Moody’s Ratings’ downgrade of the United States’ credit rating. GS yields, which move opposite to prices, rose by an average of 5.13 basis points (bps) week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of May 23 published on the Philippine Dealing System’s website. At the short end, y…
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Past US downgrades had only short-lived impact on the USD – Société Générale - Seeking Alpha
.rssg-titlesonly { border-bottom: 1px solid #dadada; margin-bottom: 20px; padding-bottom: 20px; } .rssg-title { font-size: large; font-weight: 700; line-height: 1.2; margin-bottom: 3px; } .rssg-source-date { font-size: small; } Past US downgrades had only short-lived impact on the USD – Société Générale - Seeking Alpha • May 26, 2025, 8:28 am DXY: Markets are very sensitive to comments surrounding FX – OCBC - FXStreet • May 26, 20…
Moody’s Downgrades U.S. Credit, Citing Rising Debt And Government Disfunction
On May 16th, Moody’s Ratings (Moody’s) decided to downgrade the U.S. government’s creditworthiness from Aa1 to Aaa, while shifting the long-term outlook from “stable” to “negative.” The decision comes as no surprise to many, as growing debt burdens and budget deficit continue to stress the new administration. Moody’s downgrade was driven by its sovereign rating methodology, which evaluates economic resilience, institutional governance, and fisc…
Greenback at Risk - Action Forex
Trouble is piling up for the US. After trade wars, fiscal issues are now weighing on the dollar. Moody’s became the latest major agency to strip the US of its highest credit rating. Lawmakers passed a controversial, sweeping tax cut bill by a slim margin. A weak auction of 20-year Treasury bonds gave rise to concerns about cooling demand for treasuries from foreign investors. Finally, threats to raise tariffs on imported iPhones to 25% and on EU…
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