After the markets closed on Friday, May 16, Moody’s cut the U.S. sovereign credit rating from Aaa to Aa1. In an April 25, 2025, Barchart article that addressed why U.S. government bonds were weak, I highlighted tariffs and the U.S. government debt level, concluding:
Trade deals between the U.S. and its leading partners worldwide, including China, Japan, the EU, Canada, Mexico, and others, could lift bonds as they would reduce inflationary pressures and fears. Meanwhile, a long-term standoff could send the long bonds lower and interest rates higher. The 107-04 support and 134-14 resistance are the critical technical levels in late April 2025.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
