U.S. Treasury yields spiked on Monday after Moody’s downgraded the U.S.’ credit rating, citing fiscal concerns.
At 4:46 a.m. ET, the 30-year Treasury yield was up over 10 basis points to 5.021%. The 10-year yield also rose 10 basis points to reach 4.542%. Meanwhile, the 2-year Treasury yield was up over 2 basis points, reaching 4%.
One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
Investor concerns mounted after the rating agency Moody’s slashed the U.S.’ credit rating on Friday, bringing it down one notch from Aaa — the highest score — to Aa1. The agency attributed the downgrade to the increasing burden of financing the government’s budget deficit as well as the high cost of rolling over existing debt amid high interest rates.
“This one-notch downgrade on our 21-notch rating scale reflects the increase over more than a decade in government debt and interest payment ratios to levels that…
