Investors sold off U.S. debt over the weekend after a high-profile downgrade of the nation’s credit, stoking concern about rising borrowing costs as long-term Treasury yields spiked.

The trend threatens to drive up interest rates for everything from credit cards to mortgages, while pressing the brakes on economic growth, analysts told ABC News.

"If you borrow money, your rate will go up," Jim Bianco, a market analyst at Bianco Research, told ABC News. "Yields pretty much affect everybody."

Moody's, a top ratings agency, cut the U.S. credit rating on Friday, dropping it one notch from the top rating of Aaa to a lower classification of Aa1.

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The credit reassessment at Moody’s came years after similar downgrades of U.S. debt at the two other major credit agencies: S&P in 2011 and Fitch in 2023.

The latest downgrade arrived at a moment of heightened volatility in bond markets , however. Long-term Treasury yields soared last month in the immediate aftermath of President Donald Trump's " Liberation Day " tariffs.

House Republicans are moving to pass a domestic policy bill that includes broad tax cuts, which risks deepening the $36 trillion U.S. debt, the nonpartisan Congressional Budget Office found.

Callie Cox, chief market strategist at Ritholtz Wealth Management, told clients on Monday that the impact of the Moody’s announcement amounted largely to an issue of bad timing.

"This was the opposite of a surprise -- it was a long time coming," Cox said. "But it's a headline that came at a wildly inopportune time."

The Moody’s announcement sent the yield on a 30-year Treasury bond to a high of 5.01% at one point on Monday.

Bond yields rise as bond prices fall. When a selloff hits and demand for bonds dries up, it sends bond prices lower. In turn, bond yields move higher.

The yield for long-term Treasury bonds helps set interest rates for a host of consumer loans, analysts said.

"When you have a credit downgrade, that signals higher risk, which means higher payment to bear that risk," John Sedunov, a finance professor at Villanova University's School of Business, told ABC News.

"For consumers, whatever you might borrow to finance -- cars, houses, vacations -- this makes it all more expensive," Sedunov added.

When interest rates rise, businesses also face higher borrowing costs, making it less likely that firms would move forward with an office expansion or round of hiring, analysts said. In turn, such conditions risk an economic slowdown.