The ABUSA trade—Anywhere But USA—was back on the table this morning, as investors digested Moody's markdown of America's credit rating from triple-A, coupled with the forward march of the House's debt-expanding budget bill, and decided they didn't like the taste.
Moody's Friday evening downgrade sent yields on U.S. 30-year treasuries over 5%—and yields on 10-years over 4.5%. Driving home the news that this was a U.S. issue, futures of Wall Street's three main exchanges all slumped Monday morning—with Nasdaq futures dropping 1.7% at times—while shares in Europe and Asia traded sideways or fell, but less.
