House passage ushers in a bond revolt |
Yields on 30-year Treasury bonds hit their highest levels since 2007 following the House’s passage of Republicans’ “big, beautiful bill.” The legislation is expected to add at least $3.3 trillion to the deficit by 2034, and raises the country’s debt ceiling by $4 trillion to compensate. It alarmed bond investors, whose pushback to President Donald Trump’s agenda is starting to feel less like a spontaneous protest and more like an organized rebellion. Higher borrowing costs will stretch the budget further: Already, interest payments are set to exceed spending on national defense this year. Spiraling yields “will become a problem quite quickly,” said Adam Abbas, head of fixed income at Harris Oakmark, a division of Natixis. “It’s not a theoretical exercise. The math breaks down… If the market wants to force discipline, it can do that.” — Liz Hoffman |