US government bonds and stocks fell after a weak Treasury auction highlighted investor unease over the country’s rising debt burden, as Donald Trump attempts to push sweeping tax cuts through Congress.
The 30-year Treasury yield was up 0.11 percentage points to 5.096 per cent in evening trading in New York, the highest level since late 2023, as the price of the bonds fell. Wednesday’s move added to a multi-day rise in longer-dated Treasuries. The S&P 500 share index fell 1.6 per cent.
The fresh bout of selling came as Republican leadership in Congress held intense talks to advance the US president’s tax legislation to a vote in the House. Trump’s proposal, which he has dubbed a “big, beautiful bill”, would extend many tax cuts made during his first term in 2017 and is forecast by independent analysts to add at least $3tn to US debt over the next decade.