Global markets digested recent credit signals with cautious optimism on Tuesday, following a week marked by heightened concern over the U.S. fiscal outlook. Moody’s revised its outlook on the United States' sovereign credit rating to negative, citing fiscal deterioration and rising debt levels, which have now surpassed $36 trillion. While this sparked a brief selloff in U.S. Treasuries on Monday, bond yields steadied during Asian trading hours, allowing the U.S. dollar (USD) to firm slightly and Asian equities to rebound.