Markets Steady as Deficit Jitters Loom Over Trump Tax Bill Talks – Europe Market Wrap

US bonds and stocks steadied after a volatile day with investors focusing on how talks over President Donald Trump’s tax and spending bill play out. Private-sector data will also offer insight on how the economy is faring.

Treasuries edged higher across the curve to halt days of losses in which the 30-year yield hit the highest since 2023. S&P 500 futures pointed to a flat open. The dollar rose 0.2% while Bitcoin pushed further into record territory. Oil declined.

Republican lawmakers are grappling with details of Trump’s signature tax legislation days after a downgrade by Moody’s Ratings thrust concerns over the ballooning deficit into the spotlight. This has shown up in government bonds, sapping sentiment after an equity rebound put the S&P 500 on the cusp of a bull market.

The yield for 10-year Treasuries dropped two basis points to 4.58% on Thursday.

The worry in debt markets is that the tax bill would add trillions of dollars to an already bulging deficit at a time when investors’ appetite in US assets is waning.