Morning Juice – US Session Prep (19th May)

Sentiment
US bonds, stocks and the dollar dropped after Moody’s Ratings stripped the government of its top credit rating, reinforcing concern about the status of American assets. Gold rose.

S&P 500 contracts fell, with investors cooling on equities after a five-day winning streak.
European and Asian shares also dropped.
The yield for 30-year Treasuries surpassed 5%, rising to the highest level since November 2023.
The euro rose as much as 1.1%, leading gains against the greenback among major currencies.

The downgrade risks reinforcing Wall Street’s growing worries over the US sovereign bond market as a ballooning budget deficit shows little signs of narrowing.
The rating cut comes as lawmakers debates even more unfunded tax cuts and the economy looks set to slow as Trump upends long-established partnerships and restructures trade deals.

Moody’s joined Fitch Ratings and S&P Global Ratings in grading the world’s biggest economy below the top triple-A position.
The credit assessor now has a stable outlook. While Moody’s recognized the US’ significant economic and financial strengths, it no longer fully counterbalances the decline in fiscal metrics, the ratings company said.

Docket
11:30 ET
US sells $76 bln 3-Month Bills
US sells $68 bln 6-Month Bills

Speakers
08:30 ET
Fed’s Bostic gives welcome remarks at the Atlanta Fed’s “Financial Intermediation In Transition” conference in Fernandina Beach, FL.

08:45 ET
Fed’s Jefferson gives keynote remarks at the Atlanta Fed’s “Financial Intermediation In Transition” conference in Fernandina Beach, FL. Atlanta Fed President Raphael Bostic will moderate.
Text and Q&A are expected.

Fed’s Williams speaks in a moderated conversation at an event organized by the Mortgage Bankers Association.
No text is expected, but there is a Q&A.

09:00 ET
White House press briefing with Press Secretary Leavitt

12:30 ET
SNB’s Schlegel speaks on the monetary policy of the Swiss National Bank at the University of Lucerne, followed by Q&A.

13:15 ET
Fed Logan gives remarks and will moderate a panel at the Atlanta Fed’s “Financial Intermediation In Transition” conference in Fernandina Beach, FL. The panel is titled “The increasing role of nonbank institutions in the Treasury and money markets.”
Text is expected.

13:30 ET
Fed’s Kashkari will take part in a moderated Q&A at the Minnesota Young American Leaders Program (MYALP) at the University of Minnesota.
No text is expected, but there is a Q&A with a moderator and the audience.

14:45 ET
Fed’s Bostic is interviewed on BTV.

15:00 ET
Trump at bill signing ceremony.

16:30 ET
Trump participates in a law enforcement event.

Good luck!