The performance of US state loans at ten years has received its highest level on Wednesday since February, market concern about the budget bill examined in Congress and its impact on the American deficit.
Around 7:45 pm GMT (9:45 pm French hour), the interest rate of US state loans at ten years was 4.59%, while the president of the United States, Donald Trump, seeks to unify the Republicans of the House of Representatives to approve their vast tax reduction project.
The yields increased after a 20 -year bond auction that turned out to be “lower than expected, indicating the possible concern for the will of investors to take over the government,” information analysts said.
The markets are worried
Market movements in recent days have revived the debate on the sale of US assets. The current increase in yields exceeds the level reached in April, when fears on customs tariffs imposed by Donald Trump had a drop in the price of assets of the United States, including shares and the dollar.
The three stars of Wall Street (Dow Jones, Nasdaq, S&P 500) all 1%. The dollar also reflected with many coins.
A deficit that should be expanded
This budget megaproject must be specified in particular the extension of the tax credits granted during its first mandate before its expiration.
However, many analysts do not expect the expense reductions provided for in this project to be sufficient to compensate for tax cuts, which could expand the deficit.
Last week, the Moody’s agency reduced the debt of the United States, citing the considerable deficit of the country.
Market observers consider that the extension of tax reductions is beneficial for economic perspectives, but they fear that a higher deficit has an increase in long -term interest rates, which would finally slow growth.
Source: BFM TV
