Analyst: US tax cuts expected to put pressure on the long end of US bonds

T.Rowe Price's Head of Fixed Income, Arif Hussain, pointed out that the passage of Trump's "Beautiful Act" is expected to lead to an increase in the U.S. basic deficit, which will put pressure on the long end of the Treasury yield curve. He said, "Tax cuts will keep the U.S. fiscal deficit high for the foreseeable future and put pressure on the long end of the Treasury yield curve." A qualitative consideration that could worsen the situation is that if the U.S. no longer plays the role of "global policeman," then the foreign demand for future expected increases in U.S. Treasury issuance will be questionable. In this context, T.Rowe Price said that 10-year and longer-term U.S. Treasuries may face greater pressure. (Golden Ten) [Odaily Planet Daily News]