Mortgage rates are expected to maintain high level in coming times, as per the report on Business Insider.
The downgrade by Moody’s comes ahead of a tense period for Washington, where it’s set to debate potential cuts in tax rates that could suck away more revenue, as well as the nation’s limit on how much it can borrow.
If Washington has to pay more in interest to borrow cash to pay its bills, that could filter out and cause interest rates to rise for U.S. households and businesses too, in everything from mortgage rates to auto loan rates to credit cards. That in turn could slow the economy.
Two-year note yield, which typically moves in step with interest rate expectations, fell 0.9 basis points to 3.974 per cent. The yield on benchmark U.S. 10-year notes rose 3 basis points to 4.469 per cent, having earlier reached 4.564 per cent, the highest since April 11. The yield curve between two-year and 10-year notes steepened by 2 basis points to 49.5 basis points. The 30-year bond yield gained 3.7 basis points to 4.934 per cent after touching 5.037 per cent, the highest since November 2023.
FAQs
Q1. What has Moody’s done?
A1. Moody’s Investors Service on Friday cut the United States’ sovereign credit rating from the top ‘Aaa’, as per a report.Q2. What types of Treasury yield are there?
A2. Two-year note yield, 10-year notes, and 30-year bond yield.
