The yield on the 30-year US (United States) government bond on Monday briefly crossed the psychological 5 per cent mark. Financial markets were reacting to Moody’s Ratings downgrade of the US government debt from Aaa to Aa1. The other two large rating agencies, S&P Global and Fitch Ratings, have already downgraded the US. Thus, for the first time in over 100 years, the world’s largest and most liquid debt market doesn’t have a triple-A rating. While this will not lead to an immediate collapse in the US government bond market, investors’ confidence would take a hit and would perhaps get
Thursday, December 18, 2025 | 08:07 AM ISTहिंदी में पढें
Message from bond market: US financing needs can roil equity markets
As Moody's explained in its note, US federal debt has risen because of a sustained higher fiscal deficit
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Mandatory spending, including interest payments, is projected to increase to about 78 per cent of the total by 2035, as against 73 per cent in 2024. If the 2017 tax cuts are extended, which is what the administration intends to do, it will add about $4 trillion to the primary federal deficit over the next decade.
