Moody’s downgrade of the U.S. credit rating to Aa1 has shaken global markets

Moody’s downgrade of the U.S. credit rating to Aa1 has shaken global markets, fueling renewed concerns over fiscal stability and accelerating de-dollarization sentiment:

⚫️30-year Treasury yield hit 5.03%, 10-year rose to 4.55%—the highest since November 2023
⚫️Dollar fell against all G10 currencies, while the euro surged 1% to $1.1288
⚫️U.S. budget deficit is nearing $2tr (6% of GDP), and national debt could reach 107% of GDP by 2029
⚫️Moody’s projects the deficit to widen to 9% of GDP by 2035, driven by interest payments and entitlement spending