Despite Moody's recent downgrade of the U.S. credit rating from Aaa to Aa1—citing concerns over mounting debt—UBS analysts suggest there won’t be a major sell-off of U.S. Treasurys. While the downgrade pushed Treasury yields higher (meaning borrowing costs ticked up), the market reaction is expected to stay contained because global investors still see U.S. debt as a safe haven.

What This Mean: Credit rating downgrades sound scary, but this one might not shake things up too much. The U.S. dollar and Treasurys remain the "go-to" assets during global uncertainty, so even with higher debt levels, demand isn’t likely to collapse. Still, it’s a warning sign—if debt keeps growing, future downgrades could hurt confidence more severely.