Moody's U.S. debt downgrade is raising concerns that investors could reevaluate their appetite for U.S. government bonds, with the potential for rising yields to put pressure on stocks that are trading at elevated valuations.

U.S. stocks, bonds and the value of the U.S. dollar are drifting lower on Monday following the latest reminder that the U.S government seems to be hurtling toward an unsustainable mountain of debt. Moody’s pointed to how the U.

Stock traders knew it was an ugly setup entering Monday, with futures lower in premarket action and Treasury yields racing higher after Moody’s downgraded the US debt at the very end of last week.