U.S. Credit-Rating's Downgrade Has Broad Implications for Economic Outlook -- Market Talk

Dow Jones05-19

0725 GMT - The U.S. credit-rating downgrade Friday has broad implications for its economic outlook, Bank of Singapore's Mansoor Mohi-uddin says in a research report. "First, America's deteriorating finances reinforces our view that long-term U.S. Treasury yields will rise over time," says the chief economist. The bank continues to forecast 10-year Treasury yield to hit 5.00% over next 12 months. Second, threats to Treasurys' safe-haven status underscore the bank's view that the greenback has peaked. Finally, large deficits and inflation in the U.S. will likely compel the Fed to keep rates higher for longer, the economist adds. 10-year Treasury yield is up 7 bps at 4.5107%. (ronnie.harui@wsj.com)

 

(END) Dow Jones Newswires

May 19, 2025 03:25 ET (07:25 GMT)

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