U.S. Bond Yields Spike Amid Fiscal Concerns and Trump's Tax Bill Impact

U.S. bond yields soared to their highest level in 19 months before stabilizing, influenced by ongoing concerns over the fiscal health of the United States and the demand for government debt. Meanwhile, Wall Street stocks showed mixed performance, with the U.S. dollar strengthening after a streak of recent losses.

The initial surge in yields followed the U.S. House of Representatives' passage of President Donald Trump's tax bill, which narrowly succeeded by a single vote. This development added to apprehensions about the nation's growing debt, prompting Moody's to downgrade the U.S. credit rating from its triple-A standing.

The Treasury market is experiencing pressure, with the recent selloff driving bond yields up and prices down. The 30-year bond yield settled at 5.0521% late Thursday, while benchmark 10-year notes dropped to 4.551%. The stock market showed resilience, with tech stocks like Nvidia and Alphabet making gains, though solar energy shares took a hit. Concerns grow over the broader economic impact of Trump's tax policies.

(With inputs from agencies.)