Global Markets Steady Amid Moody's Downgrade and RBA Rate Cut

Asian stock markets witnessed gains on Tuesday, while U.S. Treasury yields stabilized, providing some relief to the U.S. dollar. Investors are currently weighing the world's largest economy's debt burden and eagerly awaiting potential trade agreements.

The Australian dollar experienced a 0.5% decline to $0.64255 following the Reserve Bank of Australia's decision to reduce interest rates. This move, attributed to a bleaker global outlook, indicated caution regarding further monetary easing.

Despite Moody's recent downgrade of U.S. sovereign credit due to concerns over the nation's escalating $36 trillion debt, which caused a brief selloff in Treasuries, the market has shown resilience. On Tuesday, the 30-year bond yield decreased by 2.8 basis points to 4.912%, finding stability after reaching an 18-month high.

(With inputs from agencies.)