Billionaire Ray Dalio weighed in on Moody’s recent downgrade of the U.S. creditworthiness, claiming the move understates the risk of government debt.  Moody’s dropped the country from its

Ray Dalio warns that Moody's credit downgrade doesn't reflect the risks of money printing by the federal government in order to pay off debt.

The news triggered a US bond sell-off on Monday. US 30-Year Treasury yields, the ones with the longest maturity date issued by the US Department of the Treasury, spiked to 5%, very close to the 5.08% multi-decade high they reached in October 2023, before retreating somewhat and closing at 4.91%.

U.S. stock futures point to a lower open, a day after stocks made a comeback to close higher despite Moody's stripping the U.S. of its top AAA rating.

Moody's downgrade of the U.S. sovereign credit rating late Friday appeared to have a modest impact on corporate bond market activity on Monday, as spreads widened slightly and new bond sales started the week softer than expected.

Moody’s warns that a much larger number of economies will suffer indirectly through slowing economic growth, declining commodity prices, depreciating currencies, and rising investor risk aversion.

Treasury Secretary Scott Bessent downplayed the U.S. credit downgrade as a "lagging indicator" of economic and fiscal conditions, after Moody's took the U.S. off its top tier.