Yields on US government bonds rose in response to the news, with the benchmark 10-year Treasury yield up 0.03 percentage points after the announcement to 4.48 per cent. The rise in yield represents a fall in price.
Yields on US government bonds rose in response to the news, with the benchmark 10-year Treasury yield up 0.03 percentage points after the announcement to 4.48 per cent. The rise in yield represents a fall in price.
It makes no sense to give the US a credit rating.
Do you mean that you don’t understand it or that you do understand it to be nonsensical? If the latter, would you mind saying a bit more about that?
Moody’s ratings are in the context of a business. The US is not a business, mainly because it prints its own money and can’t possibly go broke.
The money is based on faith. If people lose faith, it’s worthless and the US is in fact bankrupt. Taking on the entire world in a trade war and then passing a huge tax cut at the same time makes people think the country is unstable and they lose faith.
Countries have defaulted on their debt.
Republicans threaten to do so in the US about once a year now.