A Bolt From The Blue: Treasury Yields Go Haywire; Fitch Retains Negative Watch Despite US Debt Ceiling Resolution

Despite the resolution of the debt ceiling standoff allowing the U.S. government to meet its obligations, Fitch Ratings has chosen to maintain its “Rating Watch Negative” stance on the U.S. rating, according to a statement released by the credit rating agency on Friday.

The suspension of the debt limit is consistent with Fitch’s expectations and the ‘AAA’ sovereign rating of the United States. However, Fitch is concerned about repeated political standoffs and last-minute resolutions that have undermined confidence in fiscal and debt responsibility.