investors monitor vote on Trump’s spending bill
Investors were closely watching the Senate’s deliberation on President Donald Trump’s controversial spending bill, which led to a decrease in U.S. Treasury yields.
The 10-year Treasury yield dropped by more than 3 basis points to 4.249%, while the 30-year yield decreased by over 3 basis points to 4.808%. Additionally, the 2-year yield slipped by more than 1 basis point to 3.723%.
Each basis point is equivalent to 0.01%, and yields and prices have an inverse relationship.
Trump’s proposed spending bill, dubbed the “big, beautiful bill,” cleared a significant procedural hurdle in the Senate on Saturday and is now set for a final debate.
If passed, the bill could potentially increase the national debt by more than $3.9 trillion, according to a report from the Congressional Budget Office. Trump is urging lawmakers to approve the bill before the July 4 Independence Day holiday.
In a statement released on Saturday, the White House emphasized Trump’s commitment to fulfilling his promises and described a failure to pass the bill as a betrayal.
Regarding trade tensions, Trump announced that he would cease all trade discussions with Canada after the country imposed a digital services tax on American companies. However, Canada later retracted the tax, citing the importance of mutually beneficial trade agreements. Meanwhile, the U.S. and China reached a trade agreement framework on Friday.
Monday’s economic calendar is relatively quiet, but investors will be monitoring the ISM Manufacturing PMI and JOLTs job openings on Tuesday, as well as non-farm payrolls data on Thursday.
