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Analyst: US Debt Costs Remain a Concern

Analyst: US Debt Costs Remain a Concern

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2025/06/27 09:57

According to a report by Jinse Finance, BlueBay Chief Investment Officer Mark Dowding stated that concerns over long-term bond yields will persist as the U.S. budget is expected to be finalized within the next month before Congress adjourns. The pressure to reach an agreement in the coming weeks means that compromises will be made within the Republican Party. Even factoring in $250–300 billion in tariff revenues, the fiscal deficit ratio will remain around 7% of GDP. “Concerns about the rising level of U.S. debt are unlikely to ease in the short term.” BlueBay believes that the Trump administration will not implement tax increases or substantial spending cuts, and the only possible way to reduce the deficit is through a significant decline in borrowing costs.

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