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Who could have seen that coming?

After a disastrous 30Y bond auction this week, a collapse in Treasury market liquidity, and an accelerating rise in the market's perception of the United States' credit risk, Moody's has just cut its outlook on US credit ratings to negative from stable.

Source: Bloomberg

The key driver of the outlook change to negative is Moody's assessment that the downside risks to the US' fiscal strength have increased and may no longer be fully offset by the sovereign's unique credit strengths.

Moody's does affirm the Aaa rating:

Full Rationale for Outrlook cut:

And cue Janet Yellen to dismiss this as folly…

Not a great look as she "negotiates" with the Chinese.