On July 1, 2025, the U.S. Treasury yield curve steepened, signaling investor apprehension regarding fiscal policies and trade tariffs. This shift reflects concerns over the "One Big Beautiful Bill Act" and its impact on the national debt. The global implications include potential inflationary pressures and increased borrowing costs.
The yield on the 30-year Treasury bond has risen, while short-term yields declined. This indicates market worries about the economic effects of policies implemented by the Trump administration. The "One Big Beautiful Bill Act" is projected to add $2.4 trillion to the federal deficit over the next decade.
Investors are showing caution, leading to less demand for long-term U.S. Treasury bonds. The Vanguard Total Bond Market ETF (BND) is trading at $73.63. This trend is visible in recent Treasury auctions, which have seen lukewarm demand. (Source: Reuters, July 1, 2025)