May 22, 2025
Article from El Mundo by Laura De La Quintana
Article Synopsis
Bond yields have surged above 5.1%, the highest since 2007, amid a sustained investor exodus from U.S. Treasury bonds. This spike reflects growing market concerns over rising U.S. debt, now surpassing $36 trillion, and a projected federal deficit above 7%, fueled by President Trump’s newly approved tax plan.
The plan combines major tax breaks with deep spending cuts – particularly to Medicaid – raising fears that it will add over $4.8 trillion to the deficit over the next decade. Moody’s recent downgrade of U.S. debt from AAA to Aa1 has added to market unease, prompting investors to flee U.S. assets in favor of safer options, including European markets, which are currently hitting record highs.
