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Trading Day: Japan's long bond warning

It was a sobering day for U.S. assets on Tuesday, with Wall Street, the dollar and longer-dated Treasuries all declining as investors took a breather to digest last week's U.S. sovereign credit downgrade and the latest twists in President Donald Trump's efforts to push his sweeping tax-cut bill through Congress. The general fiscal health of developed economies and rise in long-term yields more broadly are top of investors' minds, and the most significant move in global markets on Tuesday was Japan's 30-year yield hitting a record high. A junk-rated U.S. Treasury?

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How major US stock indexes fared Tuesday, 5/20/2025

The Dow Jones Industrial Average fell 0.3%, and the Nasdaq composite fell 0.4%. Stocks of companies in the travel industry led the way lower as doubts continue about how much U.S. households will be able to spend on vacations. U.S. Treasury yields and the value of the U.S. dollar held relatively steady.

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How major US stock indexes fared Tuesday, 5/20/2025

The Dow Jones Industrial Average fell 0.3%, and the Nasdaq composite fell 0.4%. Stocks of companies in the travel industry led the way lower as doubts continue about how much U.S. households will be able to spend on vacations. U.S. Treasury yields and the value of the U.S. dollar held relatively steady.

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Moody's downgrade ripples through bond market, causes worries for stocks

NEW YORK (Reuters) -Moody's U.S. debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields to put pressure on stocks that are trading at elevated valuations. Moody's decision to downgrade the U.S. debt rating by a notch late last week due to mounting government debt and rising interest expenses has rekindled fears of a broader investor reappraisal of U.S. sovereign debt, which could drive up borrowing costs across the economy. "Every time something like this happens, investors just think maybe they should shift a little more out of the U.S.," said Campe Goodman, fixed-income portfolio manager at Wellington Management Company.

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Thoma Bravo's Nearmap to buy insurance tech firm itel for over $1.3 billion

(Reuters) -Thoma Bravo-backed Nearmap has agreed to buy insurance technology provider itel from private equity firm GTCR, the companies said on Tuesday, as it looks to expand its offerings across property portfolios. The deal values itel at over $1.3 billion, including debt, a source familiar with the matter told Reuters. GTCR declined a comment on the deal value.

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