BlueBay's chief information officer Mark Dowding said in the report that as the US budget is expected to be finalized within the next month before Congress adjourns, concerns about long-term bond yields will continue. In the next few weeks, pressure to reach an agreement means compromises will be made within the Republican Party. The fiscal deficit rate will remain around 7% of GDP, even after taking into account the $250-300 billion tariff revenue. “Fears about rising US debt levels are unlikely to abate anytime soon.” BlueBay believes that the Trump administration will not implement tax increases or substantial spending cuts, and that the only possibility to reduce the deficit is a significant reduction in borrowing costs.

BlueBay's chief information officer Mark Dowding said in the report that as the US budget is expected to be finalized within the next month before Congress adjourns, concerns about long-term bond yields will continue. In the next few weeks, pressure to reach an agreement means compromises will be made within the Republican Party. The fiscal deficit rate will remain around 7% of GDP, even after taking into account the $250-300 billion tariff revenue. “Fears about rising US debt levels are unlikely to abate anytime soon.” BlueBay believes that the Trump administration will not implement tax increases or substantial spending cuts, and that the only possibility to reduce the deficit is a significant reduction in borrowing costs.