Moodys downgraded US credit rating
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Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.
Yields in the Treasury market are rising, threatening to make it more expensive for consumers and the U.S. to manage debt.
Moody's downgrade of the U.S. sovereign credit rating late Friday appeared to have a modest impact on corporate bond market activity on Monday, as spreads widened slightly and new bond sales started the week softer than expected.
Anywhere But USA—was back on the table this morning, as investors digested Moody's markdown of America's credit rating from triple-A, coupled with the forward march of the House's debt-expanding budget bill,
Asian shares fell Monday and U.S. futures and the dollar weakened after Moody’sRatings downgraded the sovereign credit rating for the United States because of its failure to stem a rising tide of debt.
The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.