By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > US Treasury yields reach 5% over fiscal concerns
News

US Treasury yields reach 5% over fiscal concerns

News Room
Last updated: 2025/05/19 at 2:17 AM
By News Room
Share
3 Min Read
SHARE

Unlock the White House Watch newsletter for free

Your guide to what Trump’s second term means for Washington, business and the world

US assets sold off on Monday as fiscal concerns mounted following the loss of the country’s triple-A credit rating and Donald Trump’s massive tax and budget bill clearing a hurdle in Congress.

Yields on 30-year US Treasuries rose as much as 0.06 percentage points to 5 per cent on Monday during trading in Asia, while 10-year yields rose 0.04 percentage points to 4.52 per cent. Bond yields move inversely to prices.

US equity futures for the S&P 500 and the Nasdaq declined 1 per cent and 1.3 per cent, respectively. Gold prices edged up 0.5 per cent to $3,216 per troy ounce and the US dollar dipped 0.3 per cent against a basket of its peers.

The rise in bond yields came after a key congressional budget committee approved Trump’s tax bill on Sunday evening in Washington and after Moody’s downgraded the US’s triple-A sovereign credit rating on Friday evening. The rating agency warned about rising levels of government debt and a widening budget deficit.

“The bill is helping drive up the long end,” said Subadra Rajappa, head of US rates strategy at Société Générale. “It’s always hard to tell in markets beyond anecdotal evidence from price action, but it does seem consistent.”

On Friday, five Republican lawmakers from the house budget committee had voted against the bill, stalling its progress. On Sunday, the package narrowly passed the committee vote.

Trump had put pressure on his party’s lawmakers to vote in favour of the bill. “Republicans MUST UNITE behind, ‘THE ONE, BIG BEAUTIFUL BILL!’” he wrote on social media on Friday. “We don’t need “GRANDSTANDERS” in the Republican Party. STOP TALKING, AND GET IT DONE!”

The legislation, which includes hundreds of billions of dollars in new tax cuts that are not offset by changes in spending, is expected to increase the federal deficit, which stood at 6.4 per cent in 2024 — well above levels economists view as sustainable in the longer term.

A bigger deficit means more Treasury bonds, driving down prices and lifting yields. Investors sold bonds in anticipation of extra supply and the potential inflationary impacts of the tax cuts.

The administration believes the tax cuts will boost growth, raise revenues and lower the US’s deficit. But the Committee for a Responsible Federal Budget projects the tax bill could add up to $5.2tn to the national debt over 10 years.

Read the full article here

News Room May 19, 2025 May 19, 2025
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Meta’s Scale AI deal, Adobe earnings, Microsoft’s record high: Analyst weighs in

Watch full video on YouTube

Why Even High Earners Are Living Paycheck To Paycheck

Watch full video on YouTube

Empire State Realty Trust, Inc. (ESRT) Q2 2025 Earnings Call Transcript

Empire State Realty Trust, Inc. (NYSE:ESRT) Q2 2025 Earnings Conference Call July…

Stocks slide as Middle East tensions rise, energy shares gain, crypto portfolio tips

Watch full video on YouTube

Why 3D printed houses are on the rise

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

News

Empire State Realty Trust, Inc. (ESRT) Q2 2025 Earnings Call Transcript

By News Room
News

Crown Castle Inc. 2025 Q2 – Results – Earnings Call Presentation (NYSE:CCI)

By News Room
News

Microsoft poaches top Google DeepMind staff in AI talent war

By News Room
News

White Brook Capital Partners Q2 2025 Commentary

By News Room
News

EU must strengthen Asian security ties despite US pressure, says Kaja Kallas

By News Room
News

US embassy in China warns exit bans risk straining bilateral relations

By News Room
News

Client Challenge

By News Room
News

Donald Trump’s escalating attacks on Federal Reserve unnerve investors

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?