Sentiment Score: 65 | Trump's rescissions bill may lead to reduced government spending, potentially lowering bond yields and increasing bond prices | Trump's 2025 Bond Market Analysis

The House of Representatives is NOW voting on my Administration’s first “Rescissions” Bill. It will OFFICALLY “claw back” $9.4 BILLION DOLLARS in funding for wasteful Foreign Aid, used for Radical “DEI” and the Green New SCAM, and the “Corporation for Public Broadcasting,” which funds the highly biased NPR and PBS. For decades, Republicans have promised to cut NPR, but have never done it, until now. NPR and PBS are a Radical Left Disaster, and 1000% against the Republican Party! These Rescissions, along with “THE ONE, BIG, BEAUTIFUL BILL,” our highly successful Tariffs, Mass Deportations of Illegal Aliens, and our Strong Economy, will finally CUT the Deficit, and help balance our Budget. The Rescissions Bill is a NO BRAINER, and every single Republican in Congress should vote, “YES.” MAKE AMERICA GREAT AGAIN!

The proposed rescissions bill, aimed at cutting $9.4 billion in funding for various programs, may have a positive impact on the bond market. Reduced government spending could lead to lower deficit levels, which in turn could decrease the supply of new bonds and put upward pressure on bond prices. Additionally, the bill's focus on cutting wasteful foreign aid and other programs may be seen as a sign of fiscal responsibility, boosting market confidence and leading to increased demand for bonds. However, the bill's potential impact on the economy, particularly if it leads to significant job losses or reduced economic growth, could offset these positive effects. Overall, the bond market may react positively to the bill, at least in the short term, as investors seek safe-haven assets in response to potential economic uncertainty. Historical patterns suggest that Trump's statements on reducing government spending and promoting a strong economy have generally been positively received by the bond market, with yields decreasing and prices increasing in response to such announcements.