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Republicans in Congress warn rising US bond yields could hit Trump's tax cut plans

  • House Republicans are concerned that President-elect Donald Trump's tax-cut plans could be undermined by escalating bond yields, with a potential price tag of $4 trillion for extending the 2017 tax cuts over the next decade.
  • The U.S. Bond market is signaling that if Congress does not reduce the deficit, mortgage rates, credit card rates, and auto loan rates will continue to rise, according to Rep. Andy Barr .
  • The yield on the 10-year Treasury has surged to 4.79%, raising concerns about fiscal sustainability as debt servicing costs exceed the defense budget.
  • Mohamed El-Erian warns that U.S. Treasury yields could remain elevated through 2025, citing persistent inflation concerns and shifting market dynamics.
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