Yields on long-term U.S. Treasuries jumped after Moody’s raised alarms over the country’s growing debt burden, reinforcing fears of fiscal instability.
The selloff reflects investor skepticism about the long-term sustainability of U.S. fiscal policy, especially amid political gridlock and election-year uncertainties.
As bonds falter, investors are reallocating capital to gold and other hard assets perceived as safer stores of value. The shift suggests growing cracks in confidence in the U.S. government’s financial footing.