Moody's, debt downgrade
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How could the downgrade impact Americans? The dip in the U.S. credit rating indicates that ratings agencies believe the government is at a higher risk of default on its debt. Whil
Gold futures posted their second consecutive strong gain on Tuesday, rising 3% in the two days since Moody's downgraded its U.S. credit rating and amplified concerns over the debt and deficit spending.
Decades of excessive spending by Congress has caused Moody's to lower America's credit rating. We'll look at federal revenue and spending over the past 59 years.
The Moody’s announcement sent the yield on a 30-year Treasury bond to a high of 5.01% at one point on Monday. Bond yields rise as bond prices fall. When a selloff hits and demand for bonds dries up, it sends bond prices lower. In turn, bond yields move higher.
Moody's downgrade of the U.S. credit rating made it the third of the three major ratings agencies to downgrade U.S. credit since 2011 amid widening budget deficits.
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Mortgage rates jumped higher on Monday following Moody's downgrade of U.S. debt, adding to the headwinds facing homebuyers.
Moody’s decision to lower the rating on U.S. government debt seems unlikely to shake up the corporate bond market too much.
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.