Global Bond Sell-Off Due to U.S. Credit Rating Downgrade and Trump's Tax Bill
A sell-off in global bonds is accelerating due to Moody's downgrade of U.S. credit rating and concerns about President Donald Trump's tax bill. Investors are reevaluating long-end risk, leading to a global bond rout. The U.S. 30-year Treasury yield broke above 5%, triggering a sell-off in Treasurys and bonds across major markets. Japanese and German government bonds are also experiencing increased yields, influenced by various factors.
Key Points
- Moody's downgrade of U.S. credit rating and concerns about Trump's tax bill accelerate global bond sell-off
- U.S. 30-year Treasury yield surpasses 5%, leading to a sell-off in Treasurys and bonds across major markets
- Japanese and German government bonds also experience increased yields influenced by various factors