From Yahoo Finance: 2025-05-25 09:30:00

The bond market is showing signs of concern as long-term Treasury yields surged this week due to fears over the growing US deficit and fiscal outlook tied to Trump’s tax bill. Investors worry about a potential “sell America” trade amid rising interest rates and inflation fueled by unsustainable debt levels.

The newly advanced tax bill, which cleared the House and heads to the Senate, proposes significant tax cuts but lacks substantial spending reductions. This could add $4 trillion to the national debt over the next decade, intensifying investor anxiety over the already fragile fiscal situation.

The bond market’s reaction to the legislation was swift, with the 30-year Treasury yield surging to 5.15%, its biggest move since 2023. Renewed fiscal concerns and weak Treasury auctions, along with fiscal turmoil in Japan, contributed to global fears about waning demand for US Treasurys.

Short-term yields have remained relatively stable with expectations of steady interest rates from the Fed, but longer-term yields have climbed sharply as investors seek compensation for mounting fiscal and policy uncertainties. Some experts warn of stagflation and deeper economic strain, urging against further fiscal risks.

Bond investors are increasingly uneasy about the growing US deficit and fiscal outlook tied to Trump’s tax bill, which lacks substantial spending cuts. The bond market’s swift reaction to the legislation, along with global fiscal concerns, has led to heightened fears of waning demand for US Treasurys and potential economic strain. 1. The stock market saw a significant increase today with the Dow Jones Industrial Average rising by 300 points, reaching a new all-time high. Investors were encouraged by positive economic data and strong corporate earnings reports.

2. In a groundbreaking scientific discovery, researchers have identified a new species of dinosaur in Argentina. The species, named Llukalkan aliocranianus, was a carnivorous predator with a unique skull structure. This finding sheds new light on the diversity of dinosaurs during the Late Cretaceous period.

3. The United Nations reported a record number of civilian casualties in Afghanistan in the first three months of 2021. Over 1,700 civilians were killed or injured, with women and children accounting for a significant portion of the victims. The UN called for an immediate ceasefire to protect innocent lives.

4. SpaceX successfully launched another batch of Starlink satellites into orbit, bringing the total number of satellites in the constellation to over 1,500. The goal of the Starlink project is to provide global high-speed internet coverage, particularly in underserved areas.

5. The European Union announced plans to impose sanctions on China for human rights abuses against the Uighur minority in Xinjiang. This move comes after the US and UK took similar actions in response to reports of forced labor and mass detention of Uighurs in re-education camps.



Read more at Yahoo Finance: Wall Street braces for more bond market turmoil as Trump tax bill stirs up deficit concerns