📉 Triple-A no more? Moody’s just downgraded the US, marking the end of America’s last top-tier credit rating as this action follows similar steps by Fitch in the summer of 2023 and S&P’s downgrade in 2011.. Short-term market reaction? Likely muted. Long-term effect? Higher interest costs! Treasury yields fell and the curve bullishly flattened after S&P’s downgrade in 2011 amid increased risk aversion. Conversely, the curve bearishly steepened in 2023, as the combination of ratings action and Treasury’s open-ended increases to coupon auctions drove term premium higher. (via JPM)

OUCH! The US was stripped of its last top-tier credit AAA rating on Friday after Moody’s Ratings downgraded the nation from Aaa to Aa1 on an increase in govt debt and a higher interest burden.

Good Morning from #Germany, a country that is no longer as wealthy as many people might think. One clear sign: Germany’s GDP per employee. At $123,839, Germany now trails not only the US ($151,286), Switzerland ($148,798), the Netherlands ($127,813), and France ($125,896) — but even Italy ($130,238). The background: In Italy, lower workforce participation among women means fewer people are counted as employed, which mathematically boosts GDP per employee.