U.S. Yields Soar Amid Fiscal Concerns; Stocks Rally

U.S. yields soared to the highest levels seen in 19 months before receding on Thursday, fueled by ongoing concerns regarding the nation's fiscal outlook and demand for government debt securities. Concurrently, technology-related shares buoyed Wall Street stocks, as the U.S. dollar regained strength after its recent slump.

The surge in yields followed the U.S. House of Representatives' narrow approval of President Trump's tax-cut bill, heightening worries about America's burgeoning debt. The bill introduces tax breaks for tips and car loans while bolstering military and border enforcement spending. Projections from the Congressional Budget Office suggest the legislation could add $3.8 trillion to the national debt over the next decade.

Credit rating agency Moody's recently removed the U.S. from its esteemed triple-A status, spurred by a selloff in bond prices, which inversely affect yields, ultimately drawing cautious investors back to the table. Experts signal a need for a 'circuit breaker' to stabilize the Treasury market, potentially in the form of unfavorable labor market data that might prompt Federal Reserve interventions.

(With inputs from agencies.)