Toro
Diamond Member
Moody's must have gotten a call from Timmy Geithner.
Treasury yields spike
Moodys Says Permanent Extension Of Bush Tax Cuts Would Be Negative For US Sovereign Debt Rating, Spooks Treasurys
But, oh oh, someone comes a-callin'!
Moody’s Says Extension of Tax Cuts Won’t Lead to U.S Downgrade - BusinessWeek
Todays sudden spike in yields across the curve is being widely attributed to a conversation between Moodys Steven Hess, Senior Credit Officer covering sovereigns, and Market News, in which Moodys has given the point blank warning that a permanent extension in the Bush tax cuts may lead to a downgrade of the US
Treasury yields spike
Moodys Says Permanent Extension Of Bush Tax Cuts Would Be Negative For US Sovereign Debt Rating, Spooks Treasurys
But, oh oh, someone comes a-callin'!
Moodys Investors Service Inc. said a permanent extension of the tax cuts first enacted under former President George W. Bush wont lead to a downgrade of the nations credit rating.
We have a Aaa outlook for the U.S. that is stable and we are not contemplating changing anything anytime soon, that is the bottom line, Steven Hess, senior credit officer at Moodys in New York, said in an interview today. An Aaa rating is the highest credit rating Moodys gives and signals minimal credit risk, according to the New York-based companys website.
Treasuries and stocks slid earlier after reports that Moodys said a permanent extension of Bushs tax cuts would have a negative implication for the U.S. sovereign debt rating.
A permanent extension of the tax cuts without doing something to offset it would make it more difficult to avoid the continual upward trend in the deficit, Hess said. There are many facets to the countrys credit rating, and any ratings action would result only if a spiraling, unaddressed deficit that took place over the next decade.
Moody’s Says Extension of Tax Cuts Won’t Lead to U.S Downgrade - BusinessWeek