ARTICLE

US markets closed slightly higher on Monday, with DJIA up 0.32%, S&P500 rising 0.09%, and Nasdaq edging up 0.02%. MSCI gained 0.20%, while Europe’s STOXX600 rose 0.13%. Longer-term US Treasury yields climbed, and the dollar weakened broadly as investors reacted to concerns over the national debt and a proposed tax-cut bill. These moves followed Moody’s decision late Friday to downgrade of the US sovereign credit rating from AAA. A key congressional committee approved President Trump’s tax-cut bill on Sunday, with House Republicans aiming for passage this week. The 30yrs Treasury yield briefly touched an 18-month high of 5.037% before easing to 4.934%, up 3.7bps. The 10yrs yield rose 3.0bps to 4.469% after peaking at 4.564%, its highest since April 11. Yesterday, several Federal Reserve officials commented on market conditions. New York Fed President John Williams noted that investors continue to view US Treasuries and fixed-income assets as strong investments. Atlanta Fed President Raphael Bostic said the Fed may only cut rates by 25bps this year, citing inflation risks tied to rising import tariffs. Oil prices inched higher as stalled US-Iran nuclear talks outweighed concerns over the Moody’s downgrade. Brent rose 13 cents to USD65.54, while WTI added 20 cents to USD62.69 per barrel.