The tariffs imposed by Donald Trump boosted tax revenues and stabilised the United States' financial situation.
The rating agency S&P Global also notes the credible and effective monetary policies, as well as the resilience of the US economy.
US deficit was revised positively
Under these circumstances, the agency has revised downward its forecast for the average US budget deficit for the period 2025-2028. S&P now announces it at 6.0% (compared to 7.5% previously).
Of course, Donald Trump's tax reform, which entails increased spending and lower taxes, will prevent the financial situation from improving significantly. But the tariffs should act as a counterbalance, avoiding the problem from worsening. The persistent deterioration that many feared is unlikely to materialise.
Taken together, these various factors allow S&P to reaffirm its rating on US Treasury debt.
This should provide some reassurance to investors who have seen many dire forecasts since Donald Trump took office.
Yields still attractive in the US
With the 10-year yield hovering around 4.3% and the entire US yield curve at over 3.7%, US debt continues to offer an attractive yield, making it a desirable investment for any diversified portfolio.
We therefore continue to purchase it in all our portfolios. Our specialists indicate the following portfolio composition:
The US Yield Curve
Offering high yield levels and still carrying a high rating, US debt remains an attractive investment.