Treasury Yields Ease as U.S. Labor Market Remains Resilient
0901 ET – A Treasurys selloff fueled by the passage of Trump's tax bill in the House loses some steam—and yields ease—following a decline in jobless claims. The weekly report, a proxy for layoffs, comes in at 227,000, down from 229,000. WSJ consensus was 230,000. The resilience of the U.S. labor market gives the Fed more room to keep rates on hold as it waits to see how Trump policies impact inflation. Meanwhile, Washington faces a widening budget gap that could become more expensive to finance. The 30-year yield is at 5.109%, the 10-year at 4.593% and the two-year at 3.993%. (paulo.trevisani@wsj.com; @ptrevisani)
0825 ET – The selloff on longer-term Treasurys gains momentum, sending yields higher, as the House approves a budget bill that could widen an already worrisome deficit. Yields have been climbing amid rising concerns about the U.S. fiscal situation. The bill approved this morning is still subject to changes, but investors worry that spending would remain on an upward path, leading to higher bond issuance in coming years. Yesterday's lukewarm 20-year Treasury auction indicated that foreigners are demanding higher payout to finance U.S. spending. The 30-year yield reaches 5.145%, a level not seen since 2007. The 10-year is at 4.617%. The two year is at 3.990%, after settling yesterday above 4%. (paulo.trevisani@wsj.com; @ptrevisani)
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Internal Docs Raise Questions About Trump IRS Pick Billy Long's ‘No-Show Jobs' And ‘Strange' Schedule Inside A Powerful Agency
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On Tuesday, members of the Senate Finance Committee voted 14-13 along party lines to advance Long's nomination to become commissioner of the Internal Revenue Service. That sets the stage for a Senate floor vote that could end in Long's confirmation. President Trump announced his intention to have Long lead the tax agency on Dec. 4, 2024. Long, who represented Missouri's Seventh Congressional District from 2011 until 2023, previously pushed to abolish the IRS and earned a reputation as a staunch Trump loyalist. As TPM has previously reported, Long was one of the members of Congress who promoted bogus conspiracy theories in texts with Trump's former chief of staff, Mark Meadows, during the president's fight to overturn his loss in the 2020 election. In the announcement about the nomination, which came before Trump took office for his second term, the president boasted of Long's past work as an auctioneer and described him as the 'consummate 'people person.'' Since then, Long has been installed at OPM as his nomination has worked its way through the Senate. In that time, various controversies have erupted around his nomination to lead the IRS. These include questions about Long's tax credentials, which seem to come from a Florida business that offers a three-day seminar, and about his past private-sector work promoting a non-existent tax credit as well as another credit that has been described as 'riddled with fraud.' And, in recent weeks, Long's stint at the OPM has added to those concerns. On May 23, shortly after Long appeared before the Senate Finance Committee, members provided him with additional written questions for the record. Wyden, who cited the internal OPM calendars, took the opportunity to ask Long about the work that he and three associates — Ben Elleson, Karen Meads, and Mark Czuchry — are doing at OPM. 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'Mr. Elleson is a trusted and respected employee with years of experience. He was brought on following normal hiring practices and procedures,' Long wrote, later adding, 'Ms. Meads is a seasoned employee with extensive government experience. She was brought on following normal hiring practices and procedures.' Elleson and Meads did not respond to requests for comment from TPM. A former senior OPM staffer who left the agency prior to Trump's second term and requested anonymity to avoid retaliation said the lack of activity on these calendars is unusual. 'I can't imagine a day that I had less than six or seven meetings when I was at OPM — or more — that were back to back. That's especially true for senior directors,' the former senior staffer said. The ex-staffer went on to point out that DOGE, the so-called government efficiency agency, has extensively focused on OPM and placed personnel inside the agency. 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