#bond-market

#bond-market

The Treasury assumes taxes will need to rise by £30 billion, with the Office of Budget Responsibility expected to lower its forecasts for Britain's productivity growth. Each percentage point of growth is worth about £10bn in tax and the OBR is expected to lower its forecast by 0.2%. On top of that the government needs to cover the cost of lost revenues when MPs rebelled against welfare reforms. Finally, higher debt interest payments due to rising gilt yields have added to the burden.

"Frequent shifts and reversals in tariff policy, alongside significant changes in the geopolitical environment, could have major economic and financial impacts," the European Central Bank said.

The concern is that China might dump its vast holdings of treasuries, even if that risked major side effects like racking up huge losses on its own portfolio.

Brown University has opted for a $300 million loan amid federal funding freezes and budget deficits, showcasing its financial management strategy in uncertain times.

The 10-year Treasury yield serves as a bellwether for economic health and monetary policy, directly influencing Trump’s ambitions and strategic decisions made by Scott Bessent.