The yield on the 30-year U.S. Treasury climbed above 5.1% Thursday, its highest since October 2023, as bond markets reacted to the House’s advancement of President Trump’s $4 trillion tax and spending bill.
Investors are increasingly concerned about the growing federal deficit, especially following Moody’s recent U.S. credit downgrade and weak demand at a 20-year bond auction.
The bill’s potential to flood markets with more government debt is adding pressure to long-term yields and fueling broad skepticism toward U.S. assets.