Insight

US Government Bonds No Longer Have “Safe-Haven” Status

market-avatar

Algo Research Team

Market | May 19, 2025 | Views: 250

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • No longer the safest ratings for US government bonds
  • Japan and UK are the largest creditors, China biggest seller
  • Structural increase in US borrowing costs, except when QE

Moody’s downgraded United States’ credit rating by one notch from “AAA” to “AA1”, citing concerns over fiscal sustainability as rising debt and interest costs pose downside risks.


Context: The agency warned that U.S. debt, currently at $36tn, could rise significantly from 98% of GDP in 2024 to 134% by 2035, surpassing the size of its economy.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.