Bloomberg reports that investors are worried about President Donald Trump's tax-cut plan. On Wednesday, the yield on 30-year Treasury bonds rose to 5.1%. This, in turn, led to a decline in US stocks and the dollar. Meanwhile, White House officials met with Republican lawmakers to discuss the details of the tax cuts.
The new bill is generating concern among investors. Many fear it will exacerbate the growing US budget deficit. This concern has contributed to a decrease in demand for American assets.
According to Bloomberg, investors became even more cautious about US Treasury bonds this week. Their confidence was shaken by Moody's downgrade of the country's credit rating. Further adding to these anxieties was the weak demand at Wednesday's auction of 20-year bonds.
These events likely emboldened conservative Republicans who oppose Trump's tax cuts. On Wednesday evening, officials presented an updated version of the bill to the US House of Representatives, the agency noted.