Treasury Bond yields rise and the dollar falls
Investors are also paying attention to the US tax bill.
Reuters New York/London, May 19-on account ofRegarding the US tax bill and the US debt burdenconcern, andMoody's downgraded the U.S. sovereign credit rating.Links)，Longer-term Treasury Bond yields rose on Monday, while global stock indexes and the US dollar retreated.。
Late last Friday, Moody's Investors Service downgraded the United States' sovereign credit rating from its highest level, "Aaa," drawing attention to the deteriorating fiscal outlook for the country.
President Trump's massive tax cut bill was approved by a key congressional committee on Sunday. Republicans, who control the U.S. House of Representatives, will work to push the bill through this week.
The 30-year Treasury Bond yield hit an 18-month high amid concerns 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 reaching 5.037% (the highest since November 2023).
"What Moody's is doing is actually more symbolic. Other agencies have downgraded debt ratings," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"Yes, yields rose because of this news, and may surge even higher. But there are other reasons for the rise in yields," he added. "Overall, the market didn't react much to Moody's announcement. On the contrary, this is a market that has already risen and may be seeking to consolidate its recent trend."
US Treasury Secretary Scott Bessent (LinksHe refuted this in a television interview on Sunday.Moody's downgrade remarksIt also warned trading partners that they would be subject to the highest tariffs if they did not offer deals "in good faith".
Besant will attend the G7 meeting this week for more talks.
Dow Jones Industrial Average.DJIdown 59.42 points, or 0.15%, to 42,592.31 points; S&P 500 Index.SPXIt fell 24.46 points, or 0.41%, to 5,933.92 points; Nasdaq Composite Index.IXICIt fell 119.50 points, or 0.62%, to 19,091.89 points.
The S&P 500 IndexLast FridayRecorded (Links)It rose for the fifth consecutive day.
MSCI Global Stock Index.MIWD00000PUSIt fell 1.73 points, or 0.20%, to 878.89. Pan-European STOXX 600 index.STOXXEurope's FTSEurofirst 300 index fell 0.17%..FTEU3Down 3.99 points, or 0.18
Morgan StanleyCapital International (MSCI) is the broadest Asia-Pacific stock index outside of Japan..MIAPJ0000PUSIt closed down 0.5%.
China (LinksMixed data shows that the Chinese economy is struggling.
TrumpTariff warWeakenedConsumers' (LinksAnalysts will focus on this week.Home DepotHD.NandTargetSgt. NRead financial reports to understand the latest consumer trends.
Trump said on Saturday,WalmartWMT.NShould "eat the tariffs" (LinksThe world's largest retailer had previously stated that it would have to start raising prices due to tariffs.
(Links)，dollargeneralweakenedThe pair hit new lows in more than a week against safe-haven currencies such as the yen, Swiss franc, and euro. US dollar to Japanese yenJPY=It fell 0.38% to 145.06.
US interest rates are not falling that quickly.
Atlanta Fed President Raphael -Bostic (RaphaelBostic)In an interview with CNBC on Monday）InterviewTime indicates, (Links)Given concerns about rising inflation caused by increased import taxes, the central bank may only be able to cut interest rates by a quarter of a percentage point for the remainder of the year.。
European Central Bank President Christine Lagarde said in an interview over the weekend that the recent decline in the dollar reflects a loss of confidence in U.S. policy.
In terms of commodities, US crude oilCLc1It rose 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 valuations https://tmsnrt.rs/2Dr2BQA
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