Treasury yields fall and the dollar is little changed as Monday’s “Sell America” trade recedes a bit.
Concerns about the U.S. government debt flared up after the Moody’s downgrade and the progress of a tax bill in Congress that looks poised to widen the already worrisome budget hole. Yields rose sharply, but lost steam and settled little changed.
With no major data point on tap, the fiscal debate will likely remain on investors’ mind for now. Fed officials have reaffirmed the central bank’s wait-and-see stance.
