Republican tax bill could cost $3.8 trillion over 10 years as its tax cuts surpass spending reductions, according to one analysis.

Moody’s blamed the downgrade on more than a decade of increasing government debt and interest payment ratios, and the failure of U.S. administrations and Congress “to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs.”

Treasuries whipsawed on Monday, with dip buyers stepping in as a selloff brought on by a downgrade of US debt by Moody’s Ratings sent 30-year yields briefly above 5%.Most Read from BloombergAmerica, ‘Nation of Porches’NJ Transit Train Engineers Strike,

I wouldn’t over emphasize the importance of this downgrade – but it adds to the ‘de-dollarization‘ theme that was already in place,” says Mizuho's head of macro strategy for EMEA, Jordan Rochester.

The 30-year yield rose as much as nine basis points to 5.03%, the highest since November 2023. The benchmark 10-year rate climbed seven basis points to 4.55%. The dollar fell against all of its Group-of-10 peers, with the euro surging over 1% to $1.1288.

US equity-index futures dropped and Treasuries’ yield curve steepened after Moody’s Ratings stripped the US government of its top credit rating, citing a ballooning budget deficit it said showed little sign of narrowing.