Rising levels of sovereign debt are drawing renewed scrutiny from global bond investors as fiscal pressures intensify across advanced economies. The recent credit rating downgrade of the United States by Moody’s $MCO and tepid demand for Japanese government bonds (JGBs) underscore growing unease over debt sustainability in the world’s two largest economies.

On Friday, the credit rating agency Moody's made a significant announcement by upgrading Argentina's long-term sovereign credit rating in foreign currency to "Caa3" from "Ca." This improvement is attributed to decisive policy changes by the government that have substantially impacted the stabilization of the country's economy and external finances.