Reported 12 months ago
The US Supreme Court made a historic ruling on July 1 stating that Trump cannot be prosecuted for actions taken while in office as President due to immunity granted by the Constitution, but is not immune for non-official actions. This ruling increased the likelihood of Trump returning to the White House, leading to a sharp increase in long-term US bond yields. The favorable decision by the Supreme Court boosted Trump and the Republican Party's chances of winning the election, with Trump threatening to increase tariffs post-election which may reignite inflation. US 10-year bond yields jumped 13 basis points to 4.5% on the day, the largest single-day increase in a month, while 30-year bond yields reached their highest level since May 31. The nine justices of the Supreme Court voted 6-3 in favor of the decision, acknowledging immunity for official acts but not non-official actions. This is the first ruling of its kind in US history, and the lower courts will determine which of Trump's actions constitute official acts subject to immunity. Trump, 78, became the first former President to face criminal charges and be convicted. The case was remanded back to a lower court in Washington, indicating a slim chance of Trump being tried before the November election for his role in the January 6 Capitol riot. Following a favorable ruling from the Supreme Court after his debate performance slightly outshone President Biden's, the Trump camp is energized, with Trump stating on social media that it's a 'great victory for the US Constitution and democracy.' President Biden criticized the decision, warning of almost unrestricted presidential actions, establishing a dangerous precedent. Wall Street rate strategists advised clients to prepare for Trump's return to the White House, as his proposed tariffs and trade policies could fuel inflation and lead to rising long-term US bond yields. Georgetown University law professor and former White House Deputy Legal Counsel Cliff Sloan indicated that the ruling on July 1 favored Trump's candidacy.
Source: YAHOO