Long-term US borrowing costs surged to their highest level since late 2023 on Monday, as a fresh downgrade of the country’s credit rating and new fiscal legislation pushed bond markets into retreat and revived investor concerns over the sustainability of American debt, the Financial Times reported.

White House National Economic Council Director Kevin Hassett criticized Moody’s Ratings over its decision to lower the US credit rating, calling the move backward-looking and saying the Trump administration is committed to lowering federal spending.

Wall Street stocks edged higher Monday (May 19) after shrugging off a spike in US Treasury bond yields following Moody's downgrade of the US credit rating. But yields subsequently eased as

The yield on both 10 and 30-year government bonds rose on Monday after another credit ratings agency downgraded the US on Friday.

Gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the U.S. government's credit rating. Spot gold rose 0.9% to $3,229.51 an ounce by 1315 ET (1715 GMT).

The S&P 500 was 0.9 percent lower in early trading after Moody’s Ratings became the last of the three major credit-rating agencies to say the US federal government no longer deserves a top-tier “Aaa” rating.

The US is no longer a triple-A sovereign credit, but top banks think investors are focused on other market narratives, with volatility to be short-lived.