US EditionHow Trump’s Big Bill Is Shaking the Bond Market
- The Republican-controlled House passed President Trump's sweeping tax and spending reconciliation bill on Thursday with a 215 to 214 vote.
- The bill includes extending Trump's 2017 tax cuts, cuts to Medicaid and SNAP, and raises the debt ceiling by $4 trillion, potentially increasing the deficit by nearly $3.8 trillion over 10 years.
- Bond markets reacted with weak demand for U.S. debt and rising yields, as 10-year Treasury yields climbed over 15 basis points and 30-year yields surpassed 5.1%, the highest since late 2023.
- Economist Richard Portes warned of serious fiscal risks, stating the bill 'threatens the safety of U.S. Treasuries' and could trigger a global financial crisis, while Moody's downgraded the U.S. credit rating from Aaa to Aa1.
- Investor concerns over rising deficits and credit downgrade risk weakening the economy, complicating Senate approval as some Republicans oppose the large debt ceiling increase.
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50 Articles
Rates of T-bills, bonds may end mixed as market jitters linger - BusinessWorld Online
RATES of the Treasury bills (T-bills) and Treasury bonds (T-bonds) to be auctioned off this week could end mixed to track the swings seen in secondary market yields following Moody’s move to cut the United States’ credit rating. The Bureau of the Treasury (BTr) will auction off P25 billion in T-bills on Monday, or P8 billion each in 91- and 182-day papers and P9 billion in 364-day papers. On Tuesday, the government will offer P30 billion in reis…
Schrager: America’s debt problem also a retirement problem
The wise minds at Moody’s Investors Service finally acknowledged what the other two main credit rating agencies did years ago: America has a debt problem. Now it’s time for America to recognize that solving its debt problem will require addressing another hard truth: Americans have a retirement problem — specifically, they retire too soon. Despite reports that Moody’s decision is related to the fiscal impact of the $3.7 trillion tax legislation …
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