Moody's downgrades US rating, 30-year Treasury yield surges to nearly a year and a half high

On May 19, after Moody’s canceled the last highest credit rating in the United States, investors’ attention turned to the ballooning U.S. debt, causing the price of long-term U.S. Treasury bonds to fall on Monday. The yield on the 30-year Treasury note rose 8 basis points to 5.02%, its highest level since November 2023. The yield on the benchmark 10-year Treasury note climbed 6 basis points to 4.54%. Jordan Rochester, head of macro strategy for EMEA at Mizuho International, said: "I wouldn’t overemphasize the importance of this downgrade, but it adds to the ‘de-dollarization’ theme that already exists. Mark Haefele, chief investment officer at UBS, said: "We believe that the latest credit action is an aggregate risk rather than a fundamental shift in the market. While the downgrade may be detrimental to some of the recent ‘good news’ momentum, we do not expect it to have a significant direct impact on financial markets. ”