Moody's downgraded the U.S. credit rating to Aa1, shaking global markets and sparking a new round of concerns about fiscal stability, while accelerating de-dollarization sentiment:
⚫️ 30-year U.S. Treasury yields reached 5.03%, and 10-year U.S. Treasury yields rose to 4.55%, the highest level since November 2023
⚫️ The dollar fell against all G10 currencies, with the euro rising 1% to $1.1288
⚫️ The U.S. budget deficit is nearing $2 trillion (6% of GDP), and by 2029, national debt could reach 107% of GDP
⚫️ Moody's predicts that by 2035, the deficit will expand to 9% of GDP, mainly due to interest and welfare expenditures