‘Sell America’ Is Back as Moody’s Pushes 30-Year Yield to 5%

Longer-dated Treasury yields rose to the psychological 5% level and S&P 500 Index futures slid with the dollar after a downgrade of the US’s credit score by Moody’s Ratings increased concerns over the nation’sdebt.

Moody’s announced Friday evening it was stripping the American government of its top credit rating, dropping the country to Aa1 from Aaa. The company, which trailed rivals, blamed successive presidents and congressional lawmakers for a ballooning budget deficit it said showed little sign of narrowing.

The downgrade risks reinforcing Wall Street’s growing worries over the US sovereign bond market as ...