Bond Yields Jump After Moody’s Downgrades U.S. Credit Rating

US credit downgrades are back in the spotlight as Moody’s lowers the U.S. rating from Aaa to Aa1 for the first time since 1949. In today’s episode, Kathy Fettke breaks down what this means for bond markets, long-term Treasury yields, and most importantly—mortgage rates. With the 30-year Treasury briefly topping 5%, investors and homebuyers alike are wondering: are borrowing costs headed even higher? Plus, how this move aligns Moody’s with other rating agencies, why deficits and political gridlock are driving concern, and what to watch in the real estate market in the weeks ahead.

LINKS

Source: https://www.cnbc.com/2025/05/19/us-treasury-yields-moodys-downgrades-us-credit-rating.html 

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Topics Discussed:

• 00:00 US Credit Downgrades
• 00:32 Bond Yield Movement
• 01:10 Moody's Reasoning
• 01:27 Market Reaction
• 02:16 Moody's Warning
• 02:28 Mortgage Rates, Car Loans, and Credit Cards