Treasury Bond yields rise, dollar retreats
Investors are also eyeing the U.S. tax bill
ReutersNEW YORK/LONDON May 19-on account ofTo the U.S. Tax Bill and the U.S. Debt BurdenConcern, andMoody's downgrades U.S. sovereign credit rating (link)，Longer-term Treasury Bond yields rose on Monday, while global stock indexes and the dollar retreated。
Late Friday, Moody's Investors Service downgraded the nation's sovereign credit rating from its highest grade of "Aaa", drawing attention to the worsening fiscal outlook for the United States.
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 hard to push the bill through this week.
The 30-year Treasury Bond yield hit an 18-month high, and investors feared 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 is doing is actually more symbolic. Other institutions have downgraded their debt," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"Yes, yields are moving higher on this news, and could soar a little higher. But there are other reasons why yields are rising," he added. "In general, the market didn't really react much to Moody's announcement. Instead, this is an already rising market, perhaps seeking to consolidate its recent trend.
Treasury Secretary Scott Bessent (link)) refuted in a television interview on SundayMoody's downgrade rhetoricWhile warning trading partners that if they do not offer deals "in good faith", they will be subject to maximum tariffs.
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; S&P 500. SPXdown 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) 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 Index. STOXXdown 0.17%, Europe's FTSEurofirst 300. FTEU3Down 3.99 points, or 0.18
Morgan StanleyCapital International Inc.'s (MSCI) broadest index of Asia-Pacific stocks outside Japan. MIAPJ0000PUSIt closed down 0.5%.
PRC (link), mixed data show that China's economy is struggling.
Trump'sTariff WarweakenedConsumer (link), analysts will be watching this weekHome DepotHD.NAndTargetTGT.NEarnings report to stay up-to-date on consumer trends.
Trump said Saturday,WalmartWMT.NShould "eat the tariff" (link), after the world's largest retailer said it would have to start raising prices because of 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 =down 0.38% at 145.06.
US interest rates are not falling as fast
Atlanta Fed President Rafael-Bostic (RaphaelBostic)On Monday in an interview with CNBC）InterviewWhen indicates, (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 fears of higher inflation triggered by higher import taxes。
European Central Bank President Christine Lagarde said in an interview published over the weekend that the recent decline in the dollar reflected a loss of confidence in U.S. policy.
In commodities, U.S. crudeCLc1up 0.24% to $62.64 a barrel; Brent crude oilLCOc1rose to $65.45 per barrel, up 0.06% on the day. Spot cashXAU =rose 1% to $3,234.34 an ounce. US gold futuresGCc1up 1.54% to $3,231.10 an ounce.
Asia-Pacific valuations https: / /tmsnrt.rs/2Dr2BQA
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