Moneycontrol Pro Panorama | Moody’s Downgrade of the US: Will It Really Shake Market Sentiment?
The Panorama newsletter is delivered to Moneycontrol Pro subscribers on trading days. It provides quick access to Moneycontrol Pro’s latest insights and adds value by contextualizing events and trends that matter to investors. The United States is navigating a precarious fiscal landscape, marked by ballooning debt and the looming impact of proposed tax cuts under former President Donald Trump. Reflecting these mounting pressures, Moody’s Ratings has downgraded the US government’s credit rating from AAA to Aa1 — a move that brings its stance in line with that of its peers. Market reaction to the downgrade was swift, but largely contained. Global equity indices fell, and US Treasury yields climbed on Monday. The 10-year benchmark bond yield rose by three basis points to around 4.50 percent, while the 30-year bond yield edged up four basis points to 4.99 percent. These levels bring yields dangerously close to the 5 percent mark, a level last seen in 2023, when rates touched 5.18 p...