Stocks were unchanged Thursday following a sizable sell-off on Wall Street as worries about a ballooning deficit deepened.
The 30-year Treasury yield hit its highest since October 2023 as lawmakers passed a bill that investors fear could worsen the U.S. deficit.
The 30-year Treasury bond yield on Thursday traded at levels not seen since 2023, around 5.1%, after spiking higher in the previous session.
The benchmark 10-year Treasury note yield traded just below 4.6%.
Investors’ appetite for continuing to buy Treasuries in order to fund the U.S. deficit could be lagging and could worsen if this bill passes the Senate, becoming law.
Stocks remained flat Thursday after a significant sell-off on Wall Street as concerns over a growing deficit grew. After lawmakers passed a bill that investors fear could worsen the U.S. economy, the 30-year Treasury yield reached its highest level since October 2023. S. . shortage.
The Dow Jones Industrial Average fell 0.1 percent, or 32 points. While the Nasdaq Composite traded just above flat, the SandP 500 fell 0.1 percent.
Early Thursday, House members approved the bill, which includes more military spending and lower taxes, in a party-line vote. On its way to the Senate, the bill may raise the U. S. . the government’s debt by trillions and increase the deficit at a time when bond prices are already being impacted and yields are rising due to concerns about a spike in inflation brought on by Trump’s tariffs. The bill is estimated to cost close to $4 trillion by the Congressional Budget Office.
After rising higher in the previous session, the 30-year Treasury bond yield on Thursday was trading at levels not seen since 2023, at about 5.1 percent. The benchmark yield on 10-year Treasury notes was slightly less than 4 points. An economy already suffering from Trump’s recently imposed universal tariffs may be put under additional strain by the rise in long-term rates, which serve as benchmarks for consumer loans.
While the S&P 500 ended the day 1 point 6 percent lower, the blue-chip Dow fell more than 800 points on Wednesday. A subpar auction for 20-year Treasury debt contributed to Wednesday’s stock decline and yield spike. investors’ desire to keep purchasing Treasury bonds to finance the U.S. S. If this bill is approved by the Senate and becomes law, the already lagging deficit could get worse. If demand for bonds keeps declining, yields would have to increase.
