The yields of the Treasury were not high on Monday afternoon, but it still rose after Moody lowered its U.S. credit rating. Interest rates have reached a critical level of recent pressure on financial markets.

this 30 years of finance The yield reached a height of 5.03%, reaching a level not seen since November 2023. The highest yield trading price was 4.921%, up 2 basis points. The 10-year yield also increased by 2 basis points to 4.459%. Meanwhile, the 2-year fiscal yield dropped 1 basis point to 3.972%.

One basis point is equivalent to 0.01%, and the yield and price move in the opposite direction.

Investors began to get rid of downgrades, and as the conference unfolded, bond purchases, driving yields lowered their highs.

rating agency Moody initially caught the eye after ratings agency Moody cut its U.S. credit rating to AA1 from AAA (highest score). The agency attributes the downgrade to increased funding for government budget deficits and the high costs of paying for high interest rates.

"This No. 1 downgrade on our 21 rating scale reflects the growth of the government debt-to-interest payment ratio over a decade, at a level significantly higher than that of sovereigns with similar ratings," the rating agency said in a statement.

Since 1949, Moody's has assigned AAA's "Country Ceiling Rating" to the United States. Now, it is consistent with all major credit rating agencies that have already given the second highest rating in the United States.

"This is the last major symbolic move by Moody's to put the U.S. at the highest rating agency," Deutsche Bank analysts said in a note.

In April, fiscal yields jumped after U.S. President Donald Trump imposed "reciprocal tariffs" on international trading partners. The 10-year yield rose by 4.5% while the 30-year yield reached 5%, which caused the Trump administration to back down the worst tariffs because they feared they would cause financial panic and would increase interest rates for consumers.

But now, with Moody's downgrade, long-term fiscal yields have returned to these levels. Interest collected for consumer debts such as mortgages are related to 10-year notes.

House Republicans are pushing Trump’s tax and spending bill this week, which legislation allowed it to surpass the House Budget Committee on Sunday night. However, the bill is expected to increase the budget deficit.

Moody's warns that the country's downgrade lacks fiscal restrictions: "The continuous U.S. government and Congress have failed to reach a consensus to reverse measures that reverse a large number of annual fiscal deficiencies and growing interest cost trends. We believe that mandatory spending and inadequate spending will lead to years of reduction in materials, given the current cost recommendations."

"With the balance of tax cuts and tariffs, Moody's appears to be sending a message that it believes these policy changes will put the U.S. on a worse fiscal trajectory online," wrote Aditya Bhave, an American economist. "That is, tariff revenues will not completely offset the cost of the proposed tax law. We agree."

Concerns about tariffs and U.S. debt burden are raising questions about whether Treasury remains a sheltered asset for global investors.