US EditionUS Government Bonds Drop as Worries over Trump’s Tax Bill Flare Up
- U.S. Government bonds fell on Wednesday amid investor concerns over President Donald Trump's tax-cut bill and related market uncertainty.
- The bond sell-off followed Republican efforts to pass a tax-cut package dubbed the "big, beautiful bill," which could raise the U.S. Deficit significantly.
- Markets also reflected anxiety from a Moody's credit-rating downgrade, ongoing U.S.-China trade tensions, and geopolitical reports about a possible Israeli strike on Iranian nuclear sites.
- As Treasury yields spiked—with 30-year bonds reaching 5.09%, the highest since 2023—former Treasury Secretary Larry Summers warned the tax plan risked triggering a "Liz Truss moment" financial crisis.
- The bond market volatility and rising yields may increase economic risks and pressure the Senate to modify the bill before the planned July 4 deadline.
44 Articles
44 Articles
US Republicans push towards tax cut bill, sparking unease in bond markets
Republican lawmakers in the House of Representatives in Washington on Wednesday appeared closer to finding common ground on new tax bill which will enact sweeping tax cuts. That news has jolted US bond and stock markets on the assumption that it could add trillions of dollars to the national debt and affect the government's creditworthiness. Also, Nvidia CEO calls US semiconductor export controls a failure.
Interest Rate Freeze in the US – Distrust of Government Finances
The dumping of US assets continues, pushing up US long-term interest rates and pushing down the dollar. Market distrust of US government finances has gained new momentum in the shadow of a budget battle in Congress, where the Trump administration is pushing to pass major tax cuts.
Larry Summers Asks Trump To 'Retreat' On Taxes Just Like He Did On Tariffs: 'Few More Days Like This And Recession Will Be Likely'
Former Treasury Secretary Larry Summers issued a stark warning to President Donald Trump, urging the latter to retreat on the taxes, as he did with the tariffs.
ASX to follow Wall Street lower as US bond sell-off deepens
The local share market is poised to fall at the open after US stocks dropped and there was tepid demand for US government bonds, a reflection of investor nerves over Donald Trump's "big, beautiful bill". Follow live.
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