Moody's cut its credit rating on US Treasury bonds, but wealth managers don't seem to be overly concerned - at least not yet.

The move came as Republicans seek to approve a large package of tax cuts, spending hikes and safety-net reductions which could add trillions of dollars in U.S. debt.

Investors sold stocks and bonds after Moody’s downgraded the U.S. credit rating, potentially complicating negotiations around Republicans’ tax plan.

A weekslong climb in longer-term yields has been fueled by persistent worries about inflation and concerns that wider deficits will necessitate larger auctions.

The downgrade follows a change in the outlook on the sovereign in 2023 due to wider fiscal deficit and higher interest payments, and comes as Congress debates tax and spending plans that could deepen the fiscal hole.

After the United States lost its last perfect credit rating on Friday, Republicans and Democrats responded by pointing fingers at each other.

Moody’s on Friday cut the US credit rating by one notch, citing rising debt and interest payments that outpace those of similarly rated sovereigns, in a move that marks the end of an era as ...