Moodys follows eventually with downgrade – MUFG
The post Moodys follows eventually with downgrade – MUFG appeared on BitcoinEthereumNews.com. The US Dollar (USD) is softer and longer-term yields are higher with the S&P future down 1.0% suggesting the potential for a day of triple selling of US assets that is being driven by the decision of Moodys to downgrade the sovereign rating of the US from the top Aaa rating to Aa1. The downgrade was coming and Moodys was the last of the big three to lower the sovereign rating of the US from the top level. S&P did it first back in 2011 followed by Fitch in 2023. Moodys had recently provided an update on its position of the US that signalled a downgrade was coming, MUFG’s FX analyst Derek Halpenny notes. Moody’s downgrade highlights US fiscal risks “Moodys cited ‘the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns’. It also added that it did not believe multi-year reductions in deficits were likely from current fiscal proposals under consideration. The downgrade came just before a deal over the weekend that resulted in the House Budget Committee approving President Trump’s tax and spending package. The deal was reached following agreement with Republican hardliners for quicker cuts to Medicaid health coverage and a faster phase-out of clean energy tax breaks and subsidies. Challenges remain and further changes to the bill seems likely with Senate opposition to elements of the bill likely to be the biggest issue ahead. The Moodys downgrade will further reinforce fiscal hawks of the needs to offer a credible, achievable bill.” “This downgrade, while the final one from the big three ratings agencies could well prove the most significant. Episode of triple selling of US assets have been few and far between in recent years. Our analysis of these episodes tend to point…
The post Moodys follows eventually with downgrade – MUFG appeared on BitcoinEthereumNews.com.
The US Dollar (USD) is softer and longer-term yields are higher with the S&P future down 1.0% suggesting the potential for a day of triple selling of US assets that is being driven by the decision of Moodys to downgrade the sovereign rating of the US from the top Aaa rating to Aa1. The downgrade was coming and Moodys was the last of the big three to lower the sovereign rating of the US from the top level. S&P did it first back in 2011 followed by Fitch in 2023. Moodys had recently provided an update on its position of the US that signalled a downgrade was coming, MUFG’s FX analyst Derek Halpenny notes. Moody’s downgrade highlights US fiscal risks “Moodys cited ‘the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns’. It also added that it did not believe multi-year reductions in deficits were likely from current fiscal proposals under consideration. The downgrade came just before a deal over the weekend that resulted in the House Budget Committee approving President Trump’s tax and spending package. The deal was reached following agreement with Republican hardliners for quicker cuts to Medicaid health coverage and a faster phase-out of clean energy tax breaks and subsidies. Challenges remain and further changes to the bill seems likely with Senate opposition to elements of the bill likely to be the biggest issue ahead. The Moodys downgrade will further reinforce fiscal hawks of the needs to offer a credible, achievable bill.” “This downgrade, while the final one from the big three ratings agencies could well prove the most significant. Episode of triple selling of US assets have been few and far between in recent years. Our analysis of these episodes tend to point…
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