Global concern about America’s fiscal health and how long it will retain its status as an economic safe harbor triggered bond yields to push higher yesterday after a 20-year auction saw a muted reaction.
The long-term outlook for the U.S. is taking a hit as analysts eye America’s $36.2 trillion national debt burden. Debt-to-GDP is expected to spiral to all-time highs in the coming decades.
The fears are partly down to the “big, beautiful bill” President Trump is trying to encourage Congress to pass. The bill includes a raft of tax cuts, partly an extension of a temporary bill first passed in 2017.
While the Trump team argues that tax cuts will increase discretionary income and, as such, lead to a rise in economic activity and growth, other economists counter that the White House is shutting off vital revenue needed to rebalance its books.
These concerns played out in the bond market yesterday with 30-year Treasury yields closing above 5% at 5.09% for the first time
We współpracy z: https://fortune.com/2025/05/22/fiscal-fears-push-bond-yields-higher-as-stocks-fall-may-22/
