Trump's policy risk causing nervousness among investors, raising concerns about U.S. creditworthiness and costs.

From Yahoo Finance: 2025-04-08 11:56:00

The term premium on the U.S. Treasury bond has remained positive despite a significant drop in yields since Trump took office. Investors and academics attribute this to uncertainty about future monetary policy and the U.S. government’s creditworthiness. The risk to the U.S. government’s creditworthiness is increasing due to Trump’s trade wars and challenges to U.S. institutions and the rule of law. Some experts believe this could raise the cost of capital for the U.S. government and its citizens. The Trump administration’s policies are causing nervousness among investors, with concerns over eroding confidence in U.S. assets and the country’s institutional strength.



Read more at Yahoo Finance: Analysis-How Trump’s policy risk is showing in Treasury bonds