After weeks of unease over the demand for US long-term treasury bonds, the market is currently focusing on Thursday's 30-year treasury bond bid to determine whether the widening fiscal deficit has prompted investors to avoid US debt of this term. The $22 billion bid will take place at 1 p.m. New York time and is part of the government's regular borrowing operation. However, the bid comes at a time when Congress is considering a massive tax cut bill proposed by Donald Trump. According to some predictions, the bill could widen the US budget gap by trillions of dollars, which may require issuing more bonds to fund spending. This background, combined with market concerns that Trump's trade war may reignite inflation and weaken global demand for US assets, hit the longest-term treasury bonds in particular. Investors are becoming more cautious about providing loans to the US government for such a long period of time, so they are demanding higher yields, driving up term premiums.

After weeks of unease over the demand for US long-term treasury bonds, the market is currently focusing on Thursday's 30-year treasury bond bid to determine whether the widening fiscal deficit has prompted investors to avoid US debt of this term. The $22 billion bid will take place at 1 p.m. New York time and is part of the government's regular borrowing operation. However, the bid comes at a time when Congress is considering a massive tax cut bill proposed by Donald Trump. According to some predictions, the bill could widen the US budget gap by trillions of dollars, which may require issuing more bonds to fund spending. This background, combined with market concerns that Trump's trade war may reignite inflation and weaken global demand for US assets, hit the longest-term treasury bonds in particular. Investors are becoming more cautious about providing loans to the US government for such a long period of time, so they are demanding higher yields, driving up term premiums.