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Free (hopefully) link to NY Times report.The sprawling domestic policy bill Republicans pushed through the House on Thursday would limit the power of federal judges to hold people in contempt, potentially shielding President Trump and members of his administration from the consequences of violating court orders.
Republicans tucked the provision into the tax and spending cut bill at a time when they have moved aggressively to curb the power of federal courts to issue injunctions blocking Mr. Trump’s executive actions. It comes as federal judges have opened inquiries about whether to hold the Trump administration in contempt for violating their orders in cases related to its aggressive deportation efforts.
It is not clear whether the provision can survive under special procedures Republicans are using to push the legislation through Congress on a simple majority vote. Such bills must comply with strict rules that require that all of their components have a direct effect on federal revenues.
But by including it, Republicans were seeking to use their major policy bill to weaken federal judges. Under the rules that govern civil lawsuits in the federal courts, federal judges are supposed to order a bond from a person seeking a temporary restraining order or a preliminary injunction.
Investor unease over President Donald Trump’s economic program drove the government’s borrowing costs to their highest level in nearly two decades, following House approval of tax legislation that is expected to add trillions of dollars to the ballooning U.S. national debt.
The yield or interest rate on the 30-year Treasury bond briefly topped 5.1 percent Thursday morning, reflecting investors’ demands for greater compensation in return for lending money to the U.S. government.
If yields remain elevated, they will eventually mean higher borrowing costs on mortgages, credit cards and auto loans. Already, the average rate on 30-year mortgages has risen to 6.81 percent from 6.62 percent in mid-April, according to Freddie Mac.
Higher bond yields also are likely to act as a headwind on stocks. The S&P 500 index dropped more than 1.5 percent in early trading after the House passed the president’s tax plan by a vote of 215 to 214 with all but two Republicans in the majority and every Democrat voting no.
Yeah. That’s one word for it.too subtle i guess.
https://jonathanbaird88-89120.medium.com/the-shift-of-2025-why-capital-is-abandoning-u-s-stocks-for-europe-a706641cbebdThe switch from traditional capital flows [into the US] in uncertain times is because it is the United States that has created a good deal of investor uncertainty and concern in 2025 through the launching of a trade war, fracturing the Western Alliance, and through its threats against Canada, Greenland and Panama. The short-term effects have been a weaker dollar and weaker American stock markets.
Fox Business: https://www.foxbusiness.com/economy/amid-recent-market-turmoil-who-owns-us-treasuriesA recent analysis by Allianz economists noted that, ordinarily, when yields on Treasuries rise, the U.S. dollar gets stronger as foreign capital pursues those higher yields. However, the dollar weakened as yields rose, in this instance, which "suggests major holders were not only selling Treasuries but also converting the proceeds into currencies – possibly reallocating to European markets."
The bill could increase the U.S. government's debt by trillions and raise the deficit at a time when fears of a flare-up in inflation due to Trump tariffs are already weighing on bond prices and boosting yields.
The 30-year Treasury bond yield jumped again Wednesday to hit 5.09%, touching the highest level going back to October 2023. The benchmark 10-year Treasury note yield traded at 4.59%.
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