From Yahoo Finance: 2025-06-29 08:03:00

Investors are showing hesitation towards long-term U.S. debt, with recent outflows from bond funds at the fastest rate since the early days of the pandemic. Despite this, experts are optimistic about regulatory changes benefiting the market and major lenders potentially stabilizing the situation.

A soaring national debt and tariff chaos have added jitters to the Treasury market, but signs of relief are on the horizon for long-dated fixed income. Net outflows from U.S. bond funds totaled nearly $11 billion in the second quarter, contrasting with previous inflows of roughly $20 billion.

Concerns about America’s fiscal outlook persist as Republicans aim to pass a tax-and-spending bill adding $2.8 trillion to federal deficits over a decade. Moody’s downgrade, the last of three major credit agencies, and Goldman Sachs’ assessment of the debt’s sustainability highlight ongoing economic challenges.

Recent volatility in the bond market has led some experts to advise against long-dated government debt investments. With the Federal Reserve loosening capital requirements for major lenders, industry leaders anticipate increased bank participation in the Treasury market, potentially offsetting concerns about market absorption capacity.

In response to recent market fluctuations, experts are recommending caution with long-term U.S. debt investments. With the Federal Reserve’s move to boost bank participation in the Treasury market, industry leaders believe regulatory changes could help stabilize the market and reduce dependence on foreign investors. 1. The stock market saw a significant drop today, with the Dow Jones Industrial Average falling by 500 points. Investors are concerned about rising inflation and potential interest rate hikes by the Federal Reserve.

2. A new study published in a medical journal suggests that a certain type of diet can reduce the risk of heart disease by 20%. The diet includes whole grains, fruits, vegetables, and lean proteins.

3. The city council voted to approve a new budget that includes funding for additional police officers and improvements to local parks. The budget also allocates money for road repairs and new public transportation initiatives.

4. A popular restaurant chain announced that they will be adding plant-based options to their menu in response to customer demand for more vegetarian and vegan choices. The new items will include plant-based burgers and salads.

5. The United Nations released a report warning about the impact of climate change on global food security. The report emphasizes the need for sustainable farming practices and increased support for small-scale farmers in developing countries.

Read more: Investors piled out of U.S. bond funds in Q2, but long-term Treasuries may soon get relief