US 10-Year Treasury Yield Hits 4.96% Amid Trump Dividend Pledge
The 10-year U.S. Treasury yield closed at 4.96%, a multi-year high. The move followed President Trump's promise of a $5,000 dividend for every adult. The cost of this plan exceeds $1.3 trillion.
The 10-year U.S. Treasury bond yield closed at 4.96 percent. This level marks the highest closing point since April 2007. The note gained approximately 1.3 basis points during the session.
The 30-year Treasury yield rose by more than 8 basis points. It closed above 5.36 percent. This is the highest closing level for this bond since April 2002. Both moves occurred after President Trump pledged a $5,000 dividend to all American adults.
Dividend Pledge Drives Market Reaction
President Trump announced the proposal at the Republican National Committee convention. He stated that if Republicans control both chambers of Congress, he will issue the payment. The total cost is estimated at over $1.3 trillion. This amount exceeds the federal government's interest payments on the national debt for the current fiscal year.
Funding Source And Debt Concerns
Vice President Vance identified tariff revenue as the funding source. The Treasury Department reports $154 billion in tariff income so far this fiscal year. The U.S. national debt crossed the $40 trillion threshold last month. This rapid increase contributes to rising yields globally.
Some Republican lawmakers opposed the plan. They argued the president lacks constitutional authority to spend funds without Congress. They also warned the move would be fiscally irresponsible. Persistent inflation remains above the Federal Reserve’s 2 percent target. This factor further pressures bond yields.
