The U.S. House of Representatives narrowly passed President Donald Trump‘s $3.8 trillion tax-and-spending package on Thursday by a 215-214 margin, sending shockwaves through bond markets as 30-year Treasury yields spiked to 5.15% — the highest level since October 2023.
What Happened: The legislation, which Trump called his “big, beautiful” tax bill, now heads to the Senate for approval before the July 4 recess. While the package promises immediate economic stimulus through broad tax cuts and increased defense spending, market analysts warn of significant long-term fiscal consequences.
“It reduces taxes for lots of people, it increases spending, especially on defense,” said Jed Ellerbroek, portfolio manager at Argent Capital Management, …