macro
US Budget Deficit Reaches Record $432 Billion in July
The US budget recorded a $432 billion deficit in July, nearly 1.5 times higher than the previous year, contributing to a total deficit of $1.8 trillion since the start of the fiscal year.
AS1 News
The high deficit in July has led to an increase in the issuance of US Treasuries, which could exert upward pressure on long-term yields. The expanded supply of bonds raises borrowing costs for corporations and investors, potentially impacting equity markets, especially growth and technology sectors. Over the longer term, this trend poses risks to financial markets and the broader economy.
Increased Treasury issuance due to record deficit may lead to higher borrowing costs and market volatility.