$S&P 500(.SPX)$
$Cboe Volatility Index(VIX)$
Not sure if it is a good thing for Powell’s resignation. The market may treat this as good news towards lowered interest rates. This should allow more market liquidity with (an expected) lowered cost of financing. However, if the risk associated with borrowing is heightened, it may not have the effect as the market forces would still push up the interest rates. This can push America closer to more inflation. At the same time, they will need to convince FOMC and not just Jerome Powell about lowering the rates. We need to monitor. Trump may get his way with lowered interest but market forces can keep it up. the recent $43.6B worth of treasury re-purchase at 5+% is a good reminder. No one is buying and the USA government has to buy its own bonds. So, the trend is upwards.
$S&P 500(.SPX)$
$Cboe Volatility Index(VIX)$
$S&P 500(.SPX)$
$Cboe Volatility Index(VIX)$
US 30-Year Treasury Yields Hit Highest Since November 2023, Moody's Downgrades US Credit Rating
Long-dated Treasuries fell as Moody's Ratings downgraded the US credit rating to Aa1 from Aaa, leading to a rise in 30-year yield to 5.02%, the highest since November 2023. The downgrade reflects concerns over the nation's fiscal outlook and growing debt. Market reactions included a fall in the dollar and US stock futures. Analysts see it as a reason for investors to shift from dollar-denominated assets. US Treasury Secretary downplayed concerns, emphasizing efforts to lower federal spending. President Trump's upcoming call with Putin may impact market sentiment.
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