this post was submitted on 16 May 2025
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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.

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[–] modifier@lemmy.ca 10 points 10 months ago (1 children)

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?

[–] toots@lemm.ee -4 points 10 months ago (2 children)

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.

[–] raef@lemmy.world 12 points 10 months ago (1 children)

Countries have defaulted on their debt.

[–] Rookwood@lemmy.dbzer0.com 4 points 10 months ago

Republicans threaten to do so in the US about once a year now.

[–] Rookwood@lemmy.dbzer0.com 4 points 10 months ago

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.