The cost of credit default swaps in the United States is rising

After Moody's downgraded the U.S. credit rating from Aaa to Aa1, the cost of credit default swaps on U.S. sovereign debt increased. Joshua Mahony, Chief Market Analyst at fintech group Rostro, pointed out that the downgrade highlights the reasons for capital flowing from U.S. Treasuries to gold. According to S&P Global Market Intelligence data, the U.S. 6-month credit default swap rose 3 basis points to 64 basis points, reaching a 12-day high. The U.S. 1-year credit default swap climbed 2 basis points to 60 basis points. The U.S. 5-year credit default swap slightly increased by 1 basis point to 55 basis points