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10-Year Treasury Yield Soars Amid $3 Trillion Deficit Fears

7/3/2025

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Summary

Story summary

The 10-year Treasury yield surged as Senate Republicans advanced a tax-and-spending bill that could balloon the deficit by $3 trillion. Inflation worries loom large, exacerbated by tariffs. With the June jobs report on the horizon and a dip in ADP private payrolls, the House now grapples with uncertainty over the bill's fate amid GOP pushback.

History

Historical Context

The Economic Recovery Tax Act of 1981 significantly reduced taxes, contributing to a $1.5 trillion deficit over five years, while inflation peaked at 13.5% in 1980. Today, Senate Republicans propose a bill that could inflate the deficit by $3 trillion, reflecting historical patterns of prioritizing tax cuts, which raises concerns about inflation and government spending reminiscent of the early 1980s economic challenges.

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Story summary

The 10-year Treasury yield surged as Senate Republicans advanced a tax-and-spending bill that could balloon the deficit by $3 trillion. Inflation worries loom large, exacerbated by tariffs. With the June jobs report on the horizon and a dip in ADP private payrolls, the House now grapples with uncertainty over the bill's fate amid GOP pushback.

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