Overview

• The House Rules Committee approved President Trump's tax-and-spending bill, moving it to a full floor vote as Republican divisions persist over spending cuts.
• The bill is projected to add $3–5 trillion to the U.S. debt, compounding concerns over the $36 trillion debt load and long-term fiscal sustainability.
• A weak $16 billion 20-year Treasury auction saw record-high yields of 5.127%, signaling reduced demand for U.S. government debt.
• Moody's recent credit-rating downgrade of the U.S. and rising Treasury yields have triggered a global bond sell-off and a sharp decline in U.S. equities, with major indexes dropping over 1%.
• The U.S. dollar continues to weaken as investors shift away from U.S. assets, reinforcing a broader trend of fiscal uncertainty impacting global markets.