Treasury Bond yields rise, dollar pulls back
Investors are also eyeing the US tax bill
Reuters NEW YORK/LONDON May 19-on account ofImpact on the U.S. tax bill and the U.S. debt burdenConcern, andMoody's downgrades U.S. sovereign credit rating (link)，Longer-dated Treasury Bond yields rose Monday, while global stock indexes and the dollar pulled back。
Late last Friday, Moody's Investors Service downgraded the U.S. sovereign credit rating from its highest grade of "Aaa", raising concerns about the deteriorating fiscal outlook for the United States.
US President Trump's huge tax cut bill was approved by a key committee of Congress on Sunday. Republicans who control the U.S. House of Representatives will work hard to push the bill through this week.
The 30-year Treasury Bond yield hit an 18-month high, and investors worried that the tax cut bill would increase the debt burden more than previously expected.30-year Treasury BondUS30YT = RRThe yield rose 9.4 basis points to 4.992% after hitting 5.037%, the highest since November 2023.
"What Moody's has done is actually more symbolic. Other agencies have downgraded their debt ratings," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"Yes, yields are higher on this news and could soar a little higher. But there are other reasons why yields are rising," he added. "Overall, the market didn't really react much to Moody's announcement. Instead, this is a market that has gone up and may be looking to consolidate its recent moves.
US Treasury Secretary Scott Bessent (link)) refuted in a television interview on SundayMoody's Downgrade Remarks, while warning trading partners that if they don't offer deals "in good faith", they will be subject to the highest tariffs.
Bescent will attend the G-7 meeting this week for more talks.
Dow Jones Industrial Average. DJIFell 59.42 points, or 0.15%, to 42,592.31; S&P 500 Index. SPXFell 24.46 points, or 0.41%, to 5,933.92; Nasdaq Composite Index. IXICIt fell 119.50 points, or 0.62%, to 19,091.89.
S&P 500 Index) last FridayRecorded (link), rising for the fifth consecutive day.
MSCI Global Equity Index. MIWD00000PUSIt fell 1.73 points, or 0.20%, to 878.89. Pan-European STOXX 600 IndexSTOXXDown 0.17%, European FTSEurofirst 300 Index. FTEU3Down 3.99 points, or 0.18
Morgan StanleyCapital International Corp. (MSCI) Broadest Asia-Pacific Stock Index Outside Japan. MIAPJ0000PUSIt closed down 0.5%.
China (link), mixed data showed China's economy was struggling.
Trump'sTariff warCrippledConsumer's (link), analysts will be looking at this weekHome DepotHD.N.AndTargetTGT.N.Earnings report to understand the latest consumer trends.
Trump said on Saturday,WalmartWMT.N.Should "eat the tariffs" (link), after the world's largest retailer said it would have to start raising prices due to tariffs.
(link)，dollargeneralWeakening, hit new lows in more than a week against safe-haven currencies the yen, the Swiss franc and the euro. USD/JPYJPY =It fell 0.38% to 145.06.
U.S. interest rates aren't falling so fast
Atlanta Fed President Raphael-Bostic (RaphaelBostic)On Monday, in an interview with CNBC）InterviewsWhen indicated, (link), the central bank may only be able to cut interest rates by a quarter of a percentage point for the rest of the year, given concerns about higher inflation triggered by higher import duties。
Christine Lagarde, president of the European Central Bank, said in an interview published last weekend that the recent decline of the US dollar reflects people's loss of confidence in US policy.
In terms of commodities, US crudeCLc1Rose 0.24% to $62.64 a barrel; Brent crude oilLCOc1It rose to $65.45 a barrel, up 0.06% on the day. Spot goldXAU =It rose 1% to $3,234.34 an ounce. US gold futuresGCc1It rose 1.54% to $3,231.10 an ounce.
Asia-Pacific values https://tmsnrt.rs/2Dr2BQA
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