Dalio fears the U.S. will “print money” to pay off its debts, which creates a different problem for bondholders.

Moody's cut its credit rating on US Treasury bonds, but wealth managers don't seem to be overly concerned - at least not yet.

Moody's downgrade of the U.S. sovereign credit rating late Friday appeared to have a modest impact on corporate bond market activity on Monday, as spreads widened slightly and new bond sales started the week softer than expected.

The stock market didn’t notice. The S&P 500 secured its sixth winning day in a row and the Dow added 137 points. Equity investors at this point seem numb to both fiscal calamity and shaky economic sentiment. Bond traders, meanwhile, responded differently.

Asian shares fell Monday and U.S. futures and the dollar weakened after Moody’sRatings downgraded the sovereign credit rating for the United States because of its failure to stem a rising tide of debt.

U.S. stocks finished near the unchanged mark on Monday with market sentiment weakened by the downgrade of the federal government's perfect sovereign credit rating owing to its huge debt profile. Alex Cohen has more.

Treasury yield rose above the key 5% level after the ratings downgrade triggered an immediate kneejerk jump in longer-term yields, KBC analysts said.