Long-term Treasury yields surge after Trump proposed tax legislation, causing investor anxiety.

From Yahoo Finance: 2025-05-27 11:57:00

Wall Street is closely monitoring the bond market as long-term Treasury yields surged after investors reevaluated the US fiscal outlook due to President Trump’s proposed tax legislation. The 30-year Treasury yield reached 5.15%, near 2007 levels, but pulled back slightly following reports of Japan’s central bank scaling back bond issuance, though investor anxiety remains high. Concerns over ballooning deficits and new threats like fiscal fears, stubborn inflation, and political uncertainty are exacerbated by Trump’s advanced tax bill, which cleared the House last week. Chief economist Eric Winograd expressed difficulty in forecasting due to the bill’s projected $4 trillion addition to the national debt over the next decade. The legislation proposes significant tax cuts without substantial spending cuts, deepening concerns over the already fragile fiscal situation. Winograd noted the lack of fiscal restraint and expected the yield curve to steepen with long-term yields remaining elevated.



Read more at Yahoo Finance: Dow, S&P 500, Nasdaq soar as Trump pauses EU tariff hikes for fast-tracked talks