Treasury Yields Dip as Trump’s $3.9 Trillion Spending Bill Awaits Senate Decision

U.S. Treasury yields edged lower on Monday morning as market participants closely watched developments surrounding President Donald Trump’s proposed spending bill. The bill, labeled a “big, beautiful bill” by Trump, has sparked widespread debate and is poised for a final vote in the Senate just days before the July 4 Independence Day holiday.

At around 3:59 a.m. ET, the benchmark 10-year Treasury yield fell by 2 basis points to 4.257%, while the 30-year yield declined by 3 basis points to 4.814%. The 2-year yield remained mostly flat at 3.73%. Market movements reflected investor caution as uncertainty loomed over whether the contentious bill would clear the Senate.

The proposed spending package could significantly impact the U.S. economy, with the Congressional Budget Office estimating it would add over $3.9 trillion to the national debt. Despite criticism, the Trump administration remains firm in its support. “Failure to pass this bill would be the ultimate betrayal,” said the White House in a Saturday statement.

In related developments, President Trump escalated trade tensions with Canada over the weekend, announcing a halt to all trade discussions in response to Ottawa’s move to implement a digital services tax targeting American tech firms. However, Canada retracted the decision on Sunday night to preserve broader trade cooperation. Meanwhile, the U.S. and China concluded a trade framework agreement last Friday.

While Monday brought little in terms of major economic data, investors are anticipating key indicators later in the week. These include the ISM Manufacturing PMI and JOLTs job openings on Tuesday, followed by the highly watched non-farm payrolls report on Thursday, which could further sway market sentiment and influence yield movements.

Source: CNBC