May 15, 2025
The U.S. House of Representatives recently passed a sweeping tax-and-spending bill, sparking a global reaction in fixed income markets. The legislation, projected to add $3.8 trillion to the national debt over the next decade, has deepened concerns over long-term fiscal discipline.
Bond markets responded swiftly. U.S. 30-year Treasury yields rose to 5.13%, marking their highest level since October 2023. Similar movements were observed across global bond markets, with European and Asian yields climbing as investors repriced risk. The sell-off underscores the sensitivity of debt markets to fiscal policy, especially as interest rates remain elevated.
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