The U.S. House narrowly passed President Donald Trump‘s sweeping tax-cut bill Thursday, triggering a spike in Treasury yields as investors reacted to the bill’s multi-trillion-dollar price tag and its long-term implications for debt sustainability.
The yield on 30-year Treasury bonds surged to 5.15% in early New York trading, marking the highest level since October 23, 2023.
The move came after the House approved the $3.8 trillion tax-and-spending package by a razor-thin 215–214 margin, with all Democrats and two Republicans voting against it, and one Republican voting present.
The bill, dubbed by Trump as the “one big, beautiful bill,” advances to the Senate, where a vote is expected before the July 4 recess. If enacted, it would enact broad tax cuts, increase spending, and lift the deficit trajectory by trillions over the next decade.
Debt Explosion In The Spotlight
JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon indicated that while Trump’s plan may help stabilize the business cycle, it does little to fix America’s fiscal path.
“I think the deficit will be large and probably growing,” Dimon told Reuters. “Governments can spend money and still fail to drive growth. Responsibility matters.”
Dimon echoed concerns shared by both credit analysts and institutional investors who say the long-term trajectory of U.S. debt could …