Moody’s Downgrade Sends 30-Year Treasury Yield Above 5%, Sparking Market Fears
Moody’s downgrade of the U.S. credit rating to Aa1 from Aaa sent Treasury yields sharply higher on Monday, with the 30-year yield reaching 5.03%, its highest level since November 2023. This increase, driven by investors selling bonds, saw the 10-year yield climb to 4.513% and the 2-year yield rise to 3.993%. The downgrade cited rising government debt and interest payments as contributing factors, mirroring a similar situation in 2023 when tariffs caused a comparable yield spike. Consequently, stock futures fell significantly.
John Q. Hosedrinker