Yields on Treasurys jumped on Monday after Moody’s downgraded the US’ credit rating from Aaa to Aa1 and President Donald Trump‘s sweeping tax-cut bill passed a vote on Sunday.
The return on 30-year Treasurys rose as much as 0.13 percentage points to 5.03% as at 5:30 a.m. ET to the highest level since late 2023.
The 10-year yield also rose about 10 basis points to 4.5%. When yields rise, the price of the bond decreases.
“If we stay at these levels this would be a higher yield than that seen at the worst close after Liberation Day,” Jim Reid, managing director and head of global macro and thematic research at Deutsche Bank, said in a note on Monday.
The previous triple-A rating signified that an economy poses minimal risk and is in a good position to repay its debts. Aa1 is the second-highest rating and indicates a country is subject to very low credit risk. Other countries with the top rating include the…
