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Moody's downgraded the United Sates' credit rating for the first time in history citing unsustainable path for US federal debt and its resulting interest burden. (www.reuters.com)

submitted 3 weeks ago by yogthos@lemmy.ml to c/usa@lemmy.ml

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[–] davel@lemmy.ml 3 points 3 weeks ago (1 children)

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.

[–] yogthos@lemmy.ml 2 points 3 weeks ago

Yup, and that's the opposite of what the admin wants right now.