Posted 11/20/2023, 5:56:00 PM
Moody's: Demand for U.S. Debt Remains Strong Despite Rising Yields and Policy Uncertainty
- Structural demand for U.S. debt remains strong despite volatility in bond markets
- Moody's says U.S. financial regulators have taken steps to improve Treasury market resilience
- Foreign central banks, pension funds, insurance firms, and households expected to stabilize market as Fed reduces Treasury holdings
- Moody's recently lowered U.S. credit outlook to "negative" due to large deficits and declining affordability
- Treasury yields have jumped this year on expectations of tight Fed policy and fiscal concerns