“US bond market” fluctuates again, 30-year bond yield exceeds 5% after Moody’s downgrades credit, fears of debt surge dragging down confidence

“US bond market” volatility again, 30-year bond yield exceeds 5% after Moody’s downgrades credit, fears of debt surge dragging down confidence, analysts warn bond market is not stable

On May 22, 2568 at 03.19:XNUMX a.m., the Yahoo Finance website reported that Long-term U.S. Treasury yields jumped earlier in the week. After Moody's downgraded the US credit rating, concerns renewed about the country's worsening fiscal path.

On Monday (May 19, 68), the 30-year Treasury yield soared above 30%. This was a level that investors were closely watching and was the highest level since 2566 before adjusting down to around 4.94% at the end of the day after the bond market began to ease concerns about credit ratings. However, the adjustment was short-lived.

On Tuesday (May 20, 68), yields began to climb again, and on Wednesday (May 21, 68), they were back above 5%. In the afternoon, a sluggish bond auction further boosted yields, closing the day up about 0.12 percentage point to around 5.09%, while the 10-year Treasury note rose to around 4.6%, its highest level since February.

Since bond prices move inversely to yields, rising yields reflect investors selling bonds, a flight to safety behavior that often occurs during market turmoil, raising concerns that this could be the start of a “sell America” trend.

Wall Street analysts say the volatility reflects a shift in investor sentiment, with optimism over trade fading and concerns over mounting public debt.

While the market appeared unfazed by the initial rating downgrade, analysts warn that the bond market is not out of danger yet, pointing to fiscal uncertainty and persistent inflation as key factors that will keep long-term yields volatile in the short term.

refer : finance.yahoo.com

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