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Analyst: US Tax Reduction Measures Expected to Put Pressure on Long End of US Bonds
Summary: According to sources, on July 17th, Arif Hussain, head of the fixed income department at T.Rowe Price, stated that the passage of Trump's 'beautiful big law' is expected to increase the US basic deficit, thereby putting pressure on the long end of the US bond yield curve. He said, 'Tax reduction measures will keep the ...
According to sources, on July 17th, Arif Hussain, head of the fixed income department at T.Rowe Price, stated that the passage of Trump's 'beautiful big law' is expected to increase the US basic deficit, thereby putting pressure on the long end of the US bond yield curve. He said, 'Tax reduction measures will keep the US fiscal deficit high in the foreseeable future and put pressure on the long end of the US bond yield curve.' One qualitative consideration that could worsen the situation is that if the US no longer plays the role of 'global policeman,' the future expected increase in foreign demand for US bond issuance will be in question. In this context, T.Rowe Price stated that 10-year and longer-term US bonds may face greater pressure.
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Link: Analyst: US Tax Reduction Measures Expected to Put Pressure on Long End of US Bonds [Copy]
