Analysts: US tax cuts are expected to put pressure on the long end of US debt

T.Rowe Price's Head of Fixed Income, Arif Hussain, pointed out that the passage of Trump's "Beautiful Bill" is expected to lead to an increase in the U.S. basic deficit, thereby putting pressure on the long end of the government bond yield curve. He stated: "Tax cuts will keep the U.S. fiscal deficit high in the foreseeable future and put pressure on the long end of the U.S. bond yield curve." A qualitative consideration that could worsen the situation is that if the U.S. no longer plays the role of "global police," future foreign demand for increased U.S. bond issuance will be questioned. In this context, T.Rowe Price suggests that 10-year and longer-term U.S. bonds may face significant pressure. (Jinshi)