US Treasury yields continue to rise out of concerns about the US federal government’s fiscal policies. This will be costly to all Americans. Treasury yields are the starting basis for all loans in the United States. As they trend higher, consumer loan rates will follow.
The biggest reason for the move higher in rates is that the Republican Party is pushing for a Big Beautiful Bill that will undoubtedly add significantly to the deficit. While there have been many attempts to cut some fat from the budget, they amount to pocket change.
But two courts just ruled the tariffs to be an overstep in authority. If the Big Beautiful Bill goes through, and tariffs are removed, the deficit would soar considerably. The bond market is taking notice.
The economy, and then the stock market will follow.
But neither of these issues is the starting point of a lot of problems, which lie overseas.
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