Analyst: The cost of U.S. debt remains a concern.

On June 27th, Jin10 reported that BlueBay's Chief Information Officer Mark Dowding stated in a report that concerns over long-term bond yields will persist as the U.S. budget is expected to be finalized in the coming month before Congress goes on recess. In the coming weeks, the pressure to reach an agreement means that compromises will have to be made within the Republican Party. Even accounting for $250-300 billion in tariff revenue, the budget deficit will still remain around 7% of GDP. "Concerns over the rising level of U.S. debt are unlikely to ease in the short term." BlueBay believes that the Trump administration will not pursue tax increases or substantial spending cuts, and the only possibility of reducing the deficit lies in significantly lower borrowing costs.