Reported 2 days ago
The bond market should closely observe an impending Trump tax plan that may significantly increase the US deficit, potentially keeping yields high. Experts, including Kathy Jones from Charles Schwab, emphasize the importance of Treasury yields influenced by factors such as Federal Reserve actions, inflation, and economic health, with rising deficit concerns contributing to greater term premiums on long-term bonds. Recent budget proposals could further exacerbate these issues, leading to elevated borrowing costs and potential economic downturn due to tariffs.
Source: YAHOO