US EditionHow Trump’s Big Bill Is Shaking the Bond Market
- The Republican-controlled House narrowly passed President Trump's tax and spending reconciliation bill on May 22, 2025, in Washington, D.C., with a 215-214 vote.
- The bill combines extensions of 2017 tax cuts, further tax breaks, and cuts to Medicaid and food assistance, while raising the debt ceiling by $4 trillion, which intensified fiscal concerns.
- Following the bill's passage, U.S. Treasury yields surged, with 10-year yields topping 4.6% and 30-year yields surpassing 5.1%, amid weak demand at a $16 billion 20-year bond auction and global bond market sell-offs.
- Economists warned the bill could exacerbate the $36.2 trillion U.S. Deficit, threaten Treasury safety, and risk triggering a bond market crisis with possible global financial repercussions.
- The passage is expected to heighten borrowing costs, weaken economic growth, and invite Senate opposition, as fiscal hawks debate the bill amid mounting debt and credit rating downgrades.
35 Articles
35 Articles
'They're going to dictate the terms': Bond market hits panic button over GOP tax bill
Investors are sending strong signals of concern to Congress this week as Republicans negotiate a tax bill that would significantly increase federal deficits. The market response has been evident in the surging long-term costs of financing the national debt, marking a notable shift in investor sentiment toward U.S. Treasury debt. The immediate catalyst for market anxiety was a credit downgrade by Moody’s of the U.S. government’s borrower status, …
The bond market is worrying that 'something may be breaking beneath the surface' of Trump's tax bill
President Trump’s “big beautiful bill,” featuring tax cuts and increased spending, has rattled bond markets due to fears it will sharply increase U.S. national debt. Wall Street analysts are now questioning America’s status as a financial safe haven. But stocks are relatively calm this morning. Global stock markets were relatively quiet this morning prior to the opening bell in New York. But the calm is an eerie one — all eyes are on the bond ma…
Donald Trump’s ‘beautiful tax bill’ not popular with bond market
US president Donald Trump cut a deal with blue-state Republicans on taxes and put down an 11th-hour rebellion by conservatives over spending to get his “one big, beautiful bill” passed by the US House of Representatives.
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