Latest news with #fiscalExpansion
Bloomberg
09-07-2025
- Business
- Bloomberg
Market Girds for Pivotal 20-Year Japan Bond Sale as Yields Rise
An auction of 20-year Japanese government bonds Thursday will beam the searchlight back on rising yields as a looming election heightens concerns about fiscal expansion. The sale is just one of several in major debt markets this week as increasing yields on some longer maturities show how investors are worried about widening budget deficits. The 30-year Japanese bond yield breached the key 3% level on Tuesday again, in sight of the peak reached in May, and the 20-year yield is near the highest in about 25 years.
Yahoo
04-07-2025
- Business
- Yahoo
Every New Trillion Of Debt In Trump's 'Big Beautiful Bill' Is 'Free Adertising For Bitcoin,' Expert States
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. President Donald Trump's widely debated 'Big Beautiful Bill' passed through the Senate overnight, setting the stage for major fiscal expansion and prompting several market analysts to point to Bitcoin (CRYPTO: BTC) as a potential long-term beneficiary. Experts suggest the bill's projected impact on government spending, inflation, and the U.S. dollar could drive a shift toward Bitcoin as investors look for alternative stores of value. What Experts Are Saying: Speaking with Benzinga, Steven Rossi, CEO of Worksport (NASDAQ:WKSP), noted that the bill's large spending commitments could increase Bitcoin's appeal as a hedge against inflation. "The bill could drive Bitcoin's appeal as an inflation hedge amid its $3.3 trillion deficit, with companies like Worksport and Strategy (NASDAQ:MSTR) holding Bitcoin in their treasuries to counter fiat devaluation," Rossi said. Trending: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — However, he warned that without the inclusion of Senator Cynthia Lummis' (R-Wyo.) proposed crypto tax incentives, adoption could remain limited. Rossi added that the House's potential to add these tax breaks could significantly accelerate Bitcoin's growth. Joshua Field, Managing Partner at Contango Digital, told Benzinga that unchecked government spending remains a bipartisan issue. "It doesn't matter which party is in control, more spending is always on the table," Field said. He expects persistent inflationary pressure to continue, which could reinforce Bitcoin's position as a preferred safe-haven asset over the next few years. Steven Willinger, General Partner at Blockchain Builders Fund, said the bill is likely to push asset prices higher but at the expense of the dollar's strength and long-term debt stability. Willinger pointed out that the bill's fiscal stimulus, combined with recent political positioning that challenges Federal Reserve Chair Jerome Powell's independence, may lead to faster interest rate cuts. "Bitcoin was created as an alternative monetary system and store of value to provide an option outside of the current political constraints," Willinger said. He expects Bitcoin and correlated assets to appreciate significantly in the near to medium term. Willinger also highlighted the bill's indirect impact on the crypto sector, noting that it reduces regulatory hurdles for small crypto businesses and payment platforms. He emphasized that the successful passage of the bill could open the door for the GENIUS Stablecoin Act and future digital asset legislation, offering much-needed regulatory clarity for the Toledano, COO of Unity Wallet, described the bill as a "double-edged sword" for Bitcoin. "The bill's massive fiscal expansion may weaken the dollar and stoke inflation, potentially boosting Bitcoin's 'digital gold' appeal," Toledano said. However, he cautioned that fiscal uncertainty could increase volatility in crypto markets, pointing to Bitcoin's dip below $106,000 during Senate proceedings as an example. Why It Matters: Kyle Chassé, CEO of MV Global and Founder of PAID, described the bill's approval as an indirect endorsement of Bitcoin's long-term relevance. "Washington just wrote itself a record-breaking $5 trillion IOU—and every new trillion is free advertising for Bitcoin," Chassé said. He noted that rising liquidity and ballooning deficits typically push investors toward decentralized assets like Bitcoin, which are viewed as inflation-resistant stores of value. Chassé projected that Bitcoin could reach $225,000 by year-end, supported by the anticipated expansion in the money supply. While the bill's centerpiece focuses on tax relief for older Americans, particularly a new deduction of up to $6,000 per filer over the age of 65, budget experts warn that the bill could strain Social Security's finances. The Committee for a Responsible Federal Budget estimated that the bill's provisions could push the Social Security trust fund's depletion date from early 2033 to late 2032, raising long-term solvency concerns. As the House prepares to reconcile the final version of the bill, financial markets and crypto traders will closely monitor whether additional crypto-specific tax reforms are included, a key factor experts say could shape Bitcoin's next major move. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image: Shutterstock This article Every New Trillion Of Debt In Trump's 'Big Beautiful Bill' Is 'Free Adertising For Bitcoin,' Expert States originally appeared on
Bloomberg
27-06-2025
- Business
- Bloomberg
BlackRock's Brazier Wary of German Bonds on Vast Spending Plans
German government bonds look unattractive due to the country's ambitious fiscal expansion, despite potential appetite from European investors bringing cash home from the US, said Alex Brazier, Blackrock Inc.'s global head of investments and portfolio solutions. 'Given the scale of the fiscal expansion in Germany, even with some repatriation of capital that is going on that could cross the Atlantic towards Europe, actually bunds don't look that attractive,' Brazier said in an interview with Bloomberg TV. The firm prefers UK government bonds, he added.
