Amid economic fears … US Treasury Bonds reach 5 %
After the country’s excellent credit rating, economic problems rose, and after the huge budget of Donald Trump submitted his heel in Congress, American assets saw a declining decline on Monday.
The US Treasury Bonds rose to 5 % on Monday for 30 years during Asian Trading, up from 5 years to 4.52 %. Bond Returns moves back with prices.
American Stock Futures for Standard & Poor’s 500 Index and NASDAC index declined by 1 percent and 1.3 percent respectively.
Bond revenue was rising after a major budget committee was approved by Congress on the Trump Tax Bill on Sunday evening in Washington, and the Moody’s Agency’s sovereign credit rating from “AA1” was reduced to “AA1” on Friday evening. The classification agency has warned of a high level of government loans and a rising budget deficit.
“The draft law contributes to the long -term loan,” the head of the American interest rate strategy at the Society General Bank told the Financial Times. “It is always difficult to get it in the markets, exceeds the narrow evidence for pricing movement, but it feels stable.”
On Friday, 5 Republican representatives of the Budget Committee voted against the draft law, which led to its progress. On Sunday, the committee passed the draft legislation with a small difference.
Trump pressed his party’s assistants to vote in favor of the bill. He wrote on social media on Friday: “Republicans need to unite behind the big and beautiful draft law! We don’t need to be in the Republican Party (boasting). Stop talking and achieve it!”
The Act, which has a new tax dollar reduction of hundreds of billions of dollars that have not been replaced by cost changes, will increase the federal deficit by 6.4 percent in 2024, which is much higher than the levels of economists in the long run.
The largest deficit means more treasury bonds, leading to cheaper prices and increases revenue. Investors have sold bonds in the supply of tax deductions and inflation effects.
The administration believes that tax deductions will increase growth, increase revenue and reduce the United States deficit. But the responsible Federal Budget Committee is expected to add the tax bill to $ 5.2 trillion to the national loan for 10 years.
