Markets were rocked this week by mounting tensions in the U.S. Treasury market after Moody’s downgraded the nation’s credit rating, stripping it of its top-tier status.
Investor sentiment weakened further midweek when a 20-year Treasury auction revealed soft demand, fueling concerns about future government borrowing needs.
This sparked a sell-off in long-term bonds, sending the 30-year Treasury yield as high as 5.15%, before easing back toward 5% by Friday.
Adding to fiscal concerns, President Donald Trump, alongside Defense Secretary Pete Hegseth, announced a $175 billion initiative dubbed the “Golden Dome,” a multi-layered missile defense project intended to shield the U.S. from foreign military threats, including hypersonic and ballistic missiles.
On the political front, the House of Representatives passed what Trump called the “One, Big, …