US budget: Congress vote, market vote

Trump's fiscal plan (OBBBA) has made some progress, but the road ahead remains fraught with obstacles. The bill, passed by the House by a single vote, is now being examined by the Senate, which plans to introduce some changes. It will then return to the House. This back-and-forth could take several weeks before a final vote is taken. The 1,117-page bill can be summarised simply: large budget deficits over the next decade, leading to an increase in the government debt ratio. Since the reversal of quantitative easing about two years ago, the term premium (the additional yield required on long-term securities) has been rising. This increase has recently accelerated amid doubts about the sustainability of the debt.