Stocks, bonds and the dollar drift after the latest downgrade to the U.S. credit rating

Moody’s pointed to how the U.S. government continues to borrow more and more money to pay for its expenses, with political bickering making it difficult to either rein in Washington’s spending or raise its revenue in order to get its ballooning debt under more control. The move by Moody’s essentially warns investors globally not to lend to the U.S. government at such low interest rates, and the yield on the 10-year Treasury briefly jumped above 4.55% early Monday morning. In the foreign currency markets, the value of the U.S. dollar fell against everything from the euro to the Australian dollar.

Author: Stan Choe, Associated Press

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