Treasury yields tick lower as Trump's spending bill in focus
U.S. Treasury yields moved lower as investors monitored whether the Senate would pass President Donald Trump's divisive spending bill over the next few hours.
At 3:59 a.m. ET, the benchmark yield was 2 basis points lower at 4.257%, and the 30-year yield moved 3 basis points lower to 4.814%. Meanwhile, the 2-year yield was little changed at 3.73%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Trump's "big, beautiful bill" passed a key procedural hurdle in the Senate on Saturday and is now slated for a final debate in the Senate.
The package could add over $3.9 trillion to the national debt, per a Congressional Budget Office analysis. Trump is pushing lawmakers to pass the bill before the upcoming Independence Day holiday on July 4.
"President Trump is committed to keeping his promises, and failure to pass this bill would be the ultimate betrayal," the White House said in a statement of administration policy on Saturday.
On the tariffs front, Trump said over the weekend that he will be "terminating ALL discussions on Trade with Canada," after Ottawa decided to impose a digital services tax on American firms. However, Canada walked back the tax on Sunday night, saying it's in the interest of mutually beneficial comprehensive trade arrangements. The U.S. and China had separately finalized a framework on trade on Friday.
Monday is quiet in terms of economic data, but investors will follow the ISM Manufacturing PMI and JOLTs job openings on Tuesday, as well as non-farm payrolls on Thursday.
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Yahoo
9 minutes ago
- Yahoo
Senate Republicans search for support Trump's big bill in overnight session
WASHINGTON (AP) — The Senate is slogging through an overnight session that has dragged into Tuesday, with Republican leaders buying time as they search for ways to secure support for President Donald Trump's big bill of tax breaks and spending cuts while fending off proposed amendments, mostly from Democrats trying to defeat the package. An endgame was not immediately in sight. Senate Majority Leader John Thune of South Dakota is working for a last-minute agreement between those in his party worried the bill's reductions to Medicaid will leave millions without care and his most conservative flank, which wants even steeper cuts to hold down deficits ballooning with the tax cuts. Thune declared at one point they were in the 'homestretch' as he dashed through the halls at the Capitol, only to backtrack a short time later, suggesting any progress was "elusive.' At the same time House Speaker Mike Johnson has signaled more potential problems ahead, warning the Senate package could run into trouble when it is sent back to the House for a final round of voting, as skeptical lawmakers are being called back to Washington ahead of Donald Trump's Fourth of July deadline. 'I have prevailed upon my Senate colleagues to please, please, please keep it as close to the House product as possible,' said Johnson, the Louisiana Republican. House Republicans had already passed their version last month. It's a pivotal moment for the Republicans, who have control of Congress and are racing to wrap up work with just days to go before Trump's holiday deadline Friday. The 940-page 'One Big Beautiful Bill Act,' as it's formally titled, has consumed Congress as its shared priority with the president. In a midnight social media post urging them on, Trump called the bill 'perhaps the greatest and most important of its kind.' Vice President JD Vance summed up his own series of posts, simply imploring senators to 'Pass the bill.' The GOP leaders have no room to spare, with narrow majorities in both chambers. Thune can lose no more than three Republican senators, and already two — Sen. Thom Tillis of North Carolina, who warns people will lose access to Medicaid health care, and Sen. Rand Paul of Kentucky, who opposes raising the debt limit — have indicated opposition. Tillis abruptly announced over the weekend he would not seek reelection after Trump threatened to campaign against him. Attention quickly turned to key senators, Lisa Murkowski of Alaska and Susan Collins of Maine, who have also raised concerns about health care cuts, but also a loose coalition of four conservative GOP senators pushing for even steeper reductions. And on social media, billionaire Elon Musk was again lashing out at Republicans as 'the PORKY PIG PARTY!!' for including a provision that would raise the nation's debt limit by $5 trillion, which is needed to allow continued borrowing to pay the bills. Senate Democratic Leader Chuck Schumer of New York said his side was working to show 'how awful this is.' 'Republicans are in shambles because they know the bill is so unpopular,' Schumer said as he walked the halls. A new analysis from the nonpartisan Congressional Budget Office found 11.8 million more Americans would become uninsured by 2034 if the bill became law. The CBO said the package would increase the deficit by nearly $3.3 trillion over the decade. Senators to watch Few Republicans appear fully satisfied as the final package emerges, in either the House or Senate. Tillis said it is a betrayal of the president's promises not to kick people off health care, especially if rural hospitals close. Collins had proposed bolstering the $25 billion proposed rural hospital fund to $50 billion, but her amendment failed. And Murkowski was trying to secure provisions to spare people in her state from some health care and food stamp cuts while also working to beef up federal reimbursements to Alaska's hospitals. They have not said how they would vote for the final package. 'Radio silence,' Murkowski said when asked. At the same time, conservative Senate Republicans proposing steeper health care cuts, including Rick Scott of Florida, Mike Lee of Utah, Ron Johnson of Wisconsin and Cynthia Lummis of Wyoming, filed into Thune's office for a near-midnight meeting. The Senate has spent some 18 hours churning through more than two dozen amendments in what is called a vote-a-rama, a typically laborious process that went on longer than usual as negotiations happen on and off the chamber floor. The White House legislative team also was at the Capitol. A few of the amendments — to strike parts of the bill that would limit Medicaid funds to rural hospitals or shift the costs of food stamp benefits to the states — were winning support from a few Republicans, though almost none were passing. Sen. Mike Crapo, the GOP chairman of the Finance Committee, dismissed the dire predictions of health care cuts as Democrats trafficking in what he called the 'politics of fear.' What's in the big bill All told, the Senate bill includes $4.5 trillion in tax cuts, according to the latest CBO analysis, making permanent Trump's 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips. The Senate package would roll back billions of dollars in green energy tax credits, which Democrats warn will wipe out wind and solar investments nationwide. It would impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements on able-bodied people, including some parents and older Americans, making sign-up eligibility more stringent and changing federal reimbursements to states. Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants. Democrats fighting all day and night Unable to stop the march toward passage, the Democrats as the minority party in Congress are using the tools at their disposal to delay and drag out the process. Democrats forced a full reading of the text, which took 16 hours, and they have a stream of amendments. Sen. Patty Murray of Washington, the ranking Democrat on the Appropriations Committee, raised particular concern at the start of debate late Sunday about the accounting method being used by the Republicans, which says the tax breaks from Trump's first term are now 'current policy' and the cost of extending them should not be counted toward deficits. She said that kind of 'magic math' won't fly with Americans trying to balance their own household books. ___ Associated Press writers Ali Swenson, Fatima Hussein, Michelle L. Price, Kevin Freking, Matt Brown, Seung Min Kim and Chris Megerian contributed to this report.
Yahoo
11 minutes ago
- Yahoo
US Senate push to pass Trump's $3.3 trillion bill extends into second day
By David Morgan, Richard Cowan and Bo Erickson WASHINGTON(Reuters) -U.S. Senate Republicans were still trying to pass President Donald Trump's sweeping tax-cut and spending bill early on Tuesday morning, despite divisions within the party about its expected $3.3 trillion hit to the nation's debt pile. Senators voted in a marathon session known as a "vote-a-rama," featuring a series of amendments by Republicans and the minority Democrats, part of the arcane process Republicans are using to bypass Senate rules that normally require 60 of the chamber's 100 members to agree on legislation. Beginning early on Monday and running for roughly 18 hours, it was still unclear how long the voting would last. Lawmakers said the process had been held up partly by the need to determine whether amendments complied with special budgetary rules. Shortly after midnight, Senate Majority Leader John Thune told reporters the vote-a-rama was "hopefully on the home stretch and then we'll see where the votes are." But hours later, there was no sign of the lawmakers moving to a vote on passage. Republicans can afford to lose no more than three votes in either chamber to pass a bill the Democrats are united in opposition to. The nonpartisan Congressional Budget Office released its assessment on Sunday of the bill's hit to the $36.2 trillion U.S. debt pile. The Senate version is estimated to cost $3.3 trillion, $800 billion more than the version passed last month in the House of Representatives. Many Republicans dispute that claim, contending that extending existing policy will not add to the debt. Nonetheless, international bond investors see incentives to diversify out of the U.S. Treasury market. Democrats, meanwhile, hope the latest, eye-widening figure could stoke enough anxiety among fiscally minded conservatives to get them to buck their party, which controls both chambers of Congress. "This bill, as we have said for months, steals people's healthcare, jacks up their electricity bill to pay for tax breaks for billionaires," Democratic Senate Minority Leader Chuck Schumer said in a speech to the Senate. Thune countered that the tax cuts will help families and small businesses, as he defended spending reductions to social safety net programs. He said Medicaid was growing at an unsustainable rate and there were some improvements and reforms to make it more efficient. The Senate narrowly advanced the tax-cut, immigration, border and military spending bill in a procedural vote late on Saturday, voting 51-49 to open debate on the 940-page megabill. Trump wants the bill passed before the July 4 Independence Day holiday. BILL POLITICS Amendments proposed by Democratic senators such as the proposed limiting cuts to Medicaid were rejected by the Republican majority. Embedded in the Senate Republicans' bill are several hot-button political issues, like a prohibition of Medicaid funding for a list of almost 30 medical procedures related to gender transition, as well as an increase of immigration-related funding for criminal and gang checks for unaccompanied migrant children, including examinations of "gang-related tattoos" for children as young as 12 years old. Early on Tuesday, Democrats and Republicans voted down an attempt by Republican Senator Susan Collins to cushion the impact of Medicaid cuts on rural health facilities by doubling federal support to $50 billion over five years and paying for the increase by raising the top federal tax rate. The measure still drew support from 18 Republicans. Elon Musk, formerly appointed by Trump to spearhead his government cost-cutting plan before the pair had a public falling-out in June over the budget bill, threatened on Monday to target Republicans ahead of the 2026 mid-term election. "Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!," Musk posted on X. He also reiterated his interest in a new political party and accused lawmakers in both parties of belonging to the "porky pig party," a dig at government spending levels. The U.S. Chamber of Commerce, which says the majority of its members are small businesses, backs the bill. However, John Arensmeyer, who represents more than 85,000 small enterprises at the Small Business Majority, cautioned that the business tax relief is currently skewed to the wealthiest, top 5% of small businesses. DEBT CEILING DEADLINE The Republican measure contains a $5 trillion debt ceiling increase - $1 trillion more than the House's bill - but failure to pass some version would present lawmakers with a serious deadline later this summer, when the Treasury Department could come close to exhausting its borrowing authority and thus risk a devastating default. The debt limit increase has caused Senator Rand Paul of Kentucky to come out in opposition to the bill, joining fellow Republican Thom Tillis, who decried its cuts to Medicaid and clean energy initiatives. According to the Congressional Budget Office, the Senate bill would result in about 11.8 million additional uninsured people, surpassing estimates for the House's version. If the Senate succeeds in passing the bill, it will then go to the House, where members are also divided, with some angry about its cost and others worried about cuts to the Medicaid program. The megabill would extend the 2017 tax cuts that were Trump's main legislative achievement during his first term as president, cut other taxes and boost spending on the military and border security. Senate Republicans, who reject the budget office's estimates on the cost of the legislation, are set on using an alternative calculation method that does not factor in costs from extending the 2017 tax cuts. Outside tax experts, like Andrew Lautz from the nonpartisan think tank Bipartisan Policy Center, call it a "magic trick." Using this calculation method, the Senate Republicans' budget bill appears to cost substantially less and seems to save $500 billion, according to the BPC analysis. (Writing by Richard Cowan and Costas Pitas; Editing by Michael Perry)
The Hill
12 minutes ago
- The Hill
Greenland has a message for the rest of the world: Come visit
NUUK, Greenland (AP) — Greenland has a message for the rest of the world: We're waiting for you. 'Come visit Greenland,' said Nukartaa Andreassen, who works for a water taxi company in the capital city, Nuuk. 'Learn about it, learn about us. We love to have you. We love to tell our stories and our culture.' The mineral-rich Arctic island is open for tourism. Whale-watching tours, excursions to the iconic puffin island and guided charters through remote settlements are just the beginning of what Greenland has to offer visitors. Locals want to show what makes the island unique beyond a recent diplomatic dustup with U.S. President Donald Trump. 'Our goal and mission is to present and be the ambassadors of Greenland,' said Casper Frank Møller, the chief executive of Nuuk-based tour guide company Raw Arctic, 'and to show what beauty you can experience while you're here.' The tourism industry is expected to see a boom this year following the launch of a new route between Nuuk and Newark, New Jersey. The inaugural flight June 14 was the first direct travel from the U.S. to Greenland by an American airline. Before the direct flight, air passengers departing from the U.S. needed a layover in Iceland or Denmark to reach Greenland. The change benefited travelers like Doug Jenzen, an American tourist who was on the United Airlines plane from New Jersey. 'I came with the purpose of exploring some of the natural sites around the world's largest island, hoping to support things like ecotourism and sustainable travel while supporting the local economy,' Jenzen said. Cruise ships can already dock on the island but they bring less money to businesses catering to tourists because passengers sleep and usually eat on board. Some 150,000 tourists visited Greenland in 2024, according to Naaja Nathanielsen, Greenland's business minister. 'We really want to grow the tourism sector. It's a very good fit for many in Greenland,' Nathanielsen added. 'Tourism is about good vibes. It's about sharing culture, sharing history. It's about storytelling. And as Inuit, that's very much part of our heritage.' Greenland gained worldwide attention when Trump earlier this year announced he wanted to take control of the semiautonomous Danish territory, through a purchase or possibly by force. Denmark, a NATO ally, and Greenland have said the island is not for sale and condemned reports of the U.S. gathering intelligence there. Despite the diplomatic tension, Frank Møller of Raw Arctic sees an upside. 'It has kind of put Greenland on the world map. And it's definitely a situation that Raw Arctic has used to our advantage,' he said. Still, beefing up the tourism industry should happen at a pace that prioritizes the voices and comfort levels of the roughly 56,000 people on the island, he added. Andreassen, of Nuuk Water Taxi, agreed. 'It's very important for me to tell my own story. Because I always feel like when I meet new people, I always introduce a whole Greenland,' she said. 'It's important for me to show our own culture, our own nature. Not by television, not by other people from other countries.' In June, Pinar Saatci, a 59-year-old Turkish tourist, saw several whales breach the ocean surface during a boat tour. 'It's very exciting to be here, at the other part of the world, so far away from home,' she said. 'It's a very exciting and unforgettable moment.' Risskov Rejser has visited Greenland several times through her travel company for Danish travelers. But she is worried about the impact of a tourist invasion. 'For me, the worst thing would be if mass tourism starts and people come here, and sort of look upon the Greenland people as if they were a living museum,' she said. 'It has to be done in a respectful way and you have to consider what the consequences are.' ___ Stefanie Dazio in Berlin contributed to this report.
