Fitch Ratings sent shockwaves through the financial world last week when it unexpectedly downgraded the United States’ credit rating from AAA to AA+.
The credit downgrade has already had an impact on Treasuries and stocks, complicating investor sentiment about Treasury debt. Yields pushed higher post-decision, with the 30-year yield exceeding 4.3% on Thursday for the first time since November. (Bond yields rise when prices fall, and vice versa.)
A credit rating downgrade can lead to a number of consequences…
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