Wall Street Arches for more disturbances in the bond market, where the Trump tax bill raises deficit fears

The bond market is once again the scrutiny signs.

Long -term Treasury returns have increased this week, as investors are increasing Associated with the suggested tax legislation of President Trump.

The sales of bonds, which are usually a safe haven at unconfirmed times, contradicts the traditional behavior of safety, and it has disturbed fears From the “sale of America” ​​trade is wider Group on global markets.

“It is clear that the market is largely focused on two main things: the news of the tariff and this policy framework for debt and deficit at interest rates,” said Jeremy Schwartz at Wisdomtree Global Debusts on Thursday. “If the interest rates explode because there is fear of deficit (and) we do not already drop spending … this is one of the negative (main) risks.”

While he suffers from a deficit It has always been a source of concernIt reflects the latest wave of non -invested in a collision of both new and familiar threats, with financial concerns, stubborn inflation, and political uncertainty. In the middle of everything Trump’s advanced tax billWho cleansed the House of Representatives this week and is now heading to the Senate.

“We have an unsustainable financial situation that leads to very difficult dynamics in the bond markets where we have to pay higher interest rates to serve our debts,” said Akabas, director of economic policy at the party policy center, told Yahoo Finance on Friday.

“This ultimately leads to high interest rates throughout the economy and nourishing inflation that we have seen in the past years, and we may continue to see it from the dynamics of the tariff that occurs.”

The legislation proposes comprehensive discounts for individual tax rates and companies and is expected to add 4 trillion dollars For national debts during the next decade. Despite its scale, the draft law lacks discounts in rapid and large spending, providing the investor’s concern over the United States The fragile financial situation is already.

“The draft law of the house may be the floor of what appears to be the deficit,” said Brett Ryan, a US economist in Deutsche. “The Senate will have its opinion, and it may mean less in terms of spending discounts.”

Ryan pointed out that although the bill demands more than one trillion dollars of savings, most of this has been loaded until after the current presidential period. “Will that happen?” He asked, and he is suspicious of whether the proposed financial tightening will be achieved.

Read more: What are the bonds, how do you invest in them?