Latest news with #Buchta
Yahoo
8 hours ago
- Business
- Yahoo
The market has a big opportunity to tell Trump what it thinks about his big tax bill
A government bond auction this week will test what investors think of the GOP tax bill. The Treasury will sell $22 billion of 30-year bonds on Thursday, and demand will be closely watched. Bond investors have been reacting to developments around the bill in recent weeks. US Treasury auctions happen all the time, and they're usually unremarkable for markets. But this week's offering of 30-year government bonds will take on heightened importance. That's because it could represent an important test of what investors think about Donald Trump's so-called "Big Beautiful" tax bill. Yields on government bonds have risen in recent weeks as bond traders have dumped the fixed-income securities. The logic of their trading activity is straightforward: Amid concerns that the tax bill will further inflate a sizable federal deficit — and with so much uncertainty swirling around Trump policies overall — the appeal of holding long-dated government debt has taken a hit. This embedded content is not available in your region. The slate of bond auctions scheduled for this week is heavy, with $58 billion of three-year notes to be sold on Tuesday and $59 billion of 10-year bonds up for auction on Wednesday. But amid the deluge of supply, investors will likely be watching the $22 billion sale of 30-year debt the closest. The auction happens at a time when the safety and soundness of long-dated government bonds are being scrutinized more than ever, and not just in the US. Governments around the world have seen their debt costs spiral higher this year as bond investors question the wisdom of lending to countries running huge deficits and fueling their spending sprees with more and more debt. In the US, the concern is that the federal government — already running a steep budget deficit — is laying the groundwork for more issues down the road if lawmakers pass the Republicans' sweeping spending and tax bill. The Congressional Budget Office estimated last week that the spending bill would add $2.4 trillion to the deficit over a decade. Economists and analysts say the worry is that high deficits and heavy borrowing could lead to higher inflation, less growth, and fiscal instability — and it's got the so-called bond vigilantes on high alert already. The 30-year Treasury yield was about 4.95% on Monday, having edged down in recent weeks after touching 5.1% last month, which was the highest level since 2008. Scott Buchta, the head of fixed income strategy at Brean Capital, told Business Insider that 5% could be a sweet spot for the coming auction, drawing in long-duration investors that might be monitoring the deficit developments with unease. "It's going to be interesting. It'll depend on where the 30-year is trading going into the auction," Buchta said. "My gut is that there will be more demand at 5% than in the mid-to-high 4s." While the deficit is definitely on the radar, Buchta said that future auctions of 30-year bonds could be even more important because the market will have more clarity on the state of the tax bill. Markets already got a taste of what could happen this week back in May, when a weak 20-year bond auction in the early days of the debate over the tax bill sent stocks tumbling and fueled concerns of a buyers' strike in longer-dated US bonds. The concern among investors is that sputtering demand for long-dated Treasurys could reignite the "sell America" narrative that's waxed and waned in 2025 amid fears over tariffs, inflation, and, now, the deficit. "Any sign of diminished investor appetite could be interpreted as a reason to reallocate assets away from the US — while healthy demand might see the dollar gain as fears of a buyer's strike abate and the "de-dollarisation" theme loses some of its impetus," Karl Schamotta, chief market strategist at Corpay, wrote on Monday. This week's bond auctions are also big events for the stock market. Rising yields are a headwind for stock prices, and long-dated bond yields at or above 5% have tanked stocks in recent years. "The line in the sand is probably around 5% on the 30-year, and above that, you might see investors get more concerned, especially since the market has rallied so much recently," Paul Hickey, the co-founder of Bespoke Investment Management, told BI. With stocks hovering close to record highs, it might not take much to spark a pullback. If bond investors balk at this week's auctions over fears about the tax bill, expect the sense of complacency that's settled over markets to be quickly dispelled. "Bond auctions could shake markets out of this sense of relative calm," Corpay's Schamotta said. "Long-dated bond yields have been rising for months, with growing inflation worries, fiscal deficit fears, concerns about weakening demand from foreign real-money investors, and political uncertainty combining to widen risk premia across the curve." Read the original article on Business Insider
Yahoo
10 hours ago
- Business
- Yahoo
The market has a big opportunity to tell Trump what it thinks about his big tax bill
A government bond auction this week will test what investors think of the GOP tax bill. The Treasury will sell $22 billion of 30-year bonds on Thursday, and demand will be closely watched. Bond investors have been reacting to developments around the bill in recent weeks. US Treasury auctions happen all the time, and they're usually unremarkable for markets. But this week's offering of 30-year government bonds will take on heightened importance. That's because it could represent an important test of what investors think about Donald Trump's so-called "Big Beautiful" tax bill. Yields on government bonds have risen in recent weeks as bond traders have dumped the fixed-income securities. The logic of their trading activity is straightforward: Amid concerns that the tax bill will further inflate a sizable federal deficit — and with so much uncertainty swirling around Trump policies overall — the appeal of holding long-dated government debt has taken a hit. This embedded content is not available in your region. The slate of bond auctions scheduled for this week is heavy, with $58 billion of three-year notes to be sold on Tuesday and $59 billion of 10-year bonds up for auction on Wednesday. But amid the deluge of supply, investors will likely be watching the $22 billion sale of 30-year debt the closest. The auction happens at a time when the safety and soundness of long-dated government bonds are being scrutinized more than ever, and not just in the US. Governments around the world have seen their debt costs spiral higher this year as bond investors question the wisdom of lending to countries running huge deficits and fueling their spending sprees with more and more debt. In the US, the concern is that the federal government — already running a steep budget deficit — is laying the groundwork for more issues down the road if lawmakers pass the Republicans' sweeping spending and tax bill. The Congressional Budget Office estimated last week that the spending bill would add $2.4 trillion to the deficit over a decade. Economists and analysts say the worry is that high deficits and heavy borrowing could lead to higher inflation, less growth, and fiscal instability — and it's got the so-called bond vigilantes on high alert already. The 30-year Treasury yield was about 4.95% on Monday, having edged down in recent weeks after touching 5.1% last month, which was the highest level since 2008. Scott Buchta, the head of fixed income strategy at Brean Capital, told Business Insider that 5% could be a sweet spot for the coming auction, drawing in long-duration investors that might be monitoring the deficit developments with unease. "It's going to be interesting. It'll depend on where the 30-year is trading going into the auction," Buchta said. "My gut is that there will be more demand at 5% than in the mid-to-high 4s." While the deficit is definitely on the radar, Buchta said that future auctions of 30-year bonds could be even more important because the market will have more clarity on the state of the tax bill. Markets already got a taste of what could happen this week back in May, when a weak 20-year bond auction in the early days of the debate over the tax bill sent stocks tumbling and fueled concerns of a buyers' strike in longer-dated US bonds. The concern among investors is that sputtering demand for long-dated Treasurys could reignite the "sell America" narrative that's waxed and waned in 2025 amid fears over tariffs, inflation, and, now, the deficit. "Any sign of diminished investor appetite could be interpreted as a reason to reallocate assets away from the US — while healthy demand might see the dollar gain as fears of a buyer's strike abate and the "de-dollarisation" theme loses some of its impetus," Karl Schamotta, chief market strategist at Corpay, wrote on Monday. This week's bond auctions are also big events for the stock market. Rising yields are a headwind for stock prices, and long-dated bond yields at or above 5% have tanked stocks in recent years. "The line in the sand is probably around 5% on the 30-year, and above that, you might see investors get more concerned, especially since the market has rallied so much recently," Paul Hickey, the co-founder of Bespoke Investment Management, told BI. With stocks hovering close to record highs, it might not take much to spark a pullback. If bond investors balk at this week's auctions over fears about the tax bill, expect the sense of complacency that's settled over markets to be quickly dispelled. "Bond auctions could shake markets out of this sense of relative calm," Corpay's Schamotta said. "Long-dated bond yields have been rising for months, with growing inflation worries, fiscal deficit fears, concerns about weakening demand from foreign real-money investors, and political uncertainty combining to widen risk premia across the curve." Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
18 hours ago
- Business
- Business Insider
The market has a big opportunity to tell Trump what it thinks about his big tax bill
US Treasury auctions happen all the time, and they're usually unremarkable for markets. But this week's offering of 30-year government bonds will take on heightened importance. That's because it could represent an important test of what investors think about Donald Trump's so-called "Big Beautiful" tax bill. Yields on government bonds have risen in recent weeks as bond traders have dumped the fixed-income securities. The logic of their trading activity is straightforward: Amid concerns that the tax bill will further inflate a sizable federal deficit — and with so much uncertainty swirling around Trump policies overall — the appeal of holding long-dated government debt has taken a hit. The slate of bond auctions scheduled for this week is heavy, with $58 billion of three-year notes to be sold on Tuesday and $59 billion of 10-year bonds up for auction on Wednesday. But amid the deluge of supply, investors will likely be watching the $22 billion sale of 30-year debt the closest. The auction happens at a time when the safety and soundness of long-dated government bonds are being scrutinized more than ever, and not just in the US. Governments around the world have seen their debt costs spiral higher this year as bond investors question the wisdom of lending to countries running huge deficits and fueling their spending sprees with more and more debt. In the US, the concern is that the federal government — already running a steep budget deficit — is laying the groundwork for more issues down the road if lawmakers pass the Republicans' sweeping spending and tax bill. The Congressional Budget Office estimated last week that the spending bill would add $2.4 trillion to the deficit over a decade. Economists and analysts say the worry is that high deficits and heavy borrowing could lead to higher inflation, less growth, and fiscal instability — and it's got the so-called bond vigilantes on high alert already. The 30-year Treasury yield was about 4.95% on Monday, having edged down in recent weeks after touching 5.1% last month, which was the highest level since 2008. A possible sweet spot for yields Scott Buchta, the head of fixed income strategy at Brean Capital, told Business Insider that 5% could be a sweet spot for the coming auction, drawing in long-duration investors that might be monitoring the deficit developments with unease. "It's going to be interesting. It'll depend on where the 30-year is trading going into the auction," Buchta said. "My gut is that there will be more demand at 5% than in the mid-to-high 4s." While the deficit is definitely on the radar, Buchta said that future auctions of 30-year bonds could be even more important because the market will have more clarity on the state of the tax bill. Markets already got a taste of what could happen this week back in May, when a weak 20-year bond auction in the early days of the debate over the tax bill sent stocks tumbling and fueled concerns of a buyers' strike in longer-dated US bonds. The concern among investors is that sputtering demand for long-dated Treasurys could reignite the "sell America" narrative that's waxed and waned in 2025 amid fears over tariffs, inflation, and, now, the deficit. "Any sign of diminished investor appetite could be interpreted as a reason to reallocate assets away from the US — while healthy demand might see the dollar gain as fears of a buyer's strike abate and the "de-dollarisation" theme loses some of its impetus," Karl Schamotta, chief market strategist at Corpay, wrote on Monday. This week's bond auctions are also big events for the stock market. Rising yields are a headwind for stock prices, and long-dated bond yields at or above 5% have tanked stocks in recent years. "The line in the sand is probably around 5% on the 30-year, and above that, you might see investors get more concerned, especially since the market has rallied so much recently," Paul Hickey, the co-founder of Bespoke Investment Management, told BI. With stocks hovering close to record highs, it might not take much to spark a pullback. If bond investors balk at this week's auctions over fears about the tax bill, expect the sense of complacency that's settled over markets to be quickly dispelled. Bond auctions could shake markets out of this sense of relative calm," Corpay's Schamotta said. "Long-dated bond yields have been rising for months, with growing inflation worries, fiscal deficit fears, concerns about weakening demand from foreign real-money investors, and political uncertainty combining to widen risk premia across the curve."
Yahoo
07-05-2025
- General
- Yahoo
Students impress at this year's Rose Show
TERRE HAUTE, Ind. (WTWO/WAWV) — Rose-Hulman is a top ranked engineering school in the U.S. and at the end of every year, students get to show off innovative projects that they've been working on at the Rose Show. This year's Rose Show featured over 130 student projects, representing nearly every academic department. Rose-Hulman President Rob Coons said these projects will make an impact in the real world. 'It's really kind of Rose-Hulman's modern version of the world's fair', Coons said. 'The idea is that students have senior design and capstone projects that they've been working on, generally with a client. This creates an opportunity for them to actually present their project and show how it works.' One group of students, including senior Emily Buchta, built a stream table for kids that will be used at the Montessori Academy in Terre Haute. 'It's durable, so it's a lot lower so that children can interact with it', Buchta said. 'We have different handles and things that children can grab on to, it's very sturdy. We also created these side panels in it that children can look in. You can see erosion happening, you can see deposition, landforms, waterforms. We have four different educational packs that we have created, so as the child goes through the Montessori method, they can do different things with the stream table.' Another group, with senior Jake Gibbs, worked with the City of Terre Haute to plan out engineering solutions in a local neigborhood. 'It's called Terre Town, up in northern Terre Haute', Gibbs said. 'It was a project that was assigned to us by our professors, but it's a neighborhood that is in great need here in Terre Haute. They are having issues with cracking in their pavement. They also have undersized roads, a lack of any walkable paths in the neighborhood, and ponding issues.' Years down the road, students are hoping to see their projects still being used. 'Coming back as an alumni, especially during homecoming, and seeing this stream table still running and that our clients are still using it to teach these kids about stem topics that I really love', Buchta said. 'It just means so much to me and so much to my team. We've put in so much work just to make this product, not only a good product, but something that is built for this academy that these children can use and love for years to come.' The Rose Show is the last big project for seniors, as most plan to give their work to their collaborating organization next week, before walking the stage at commencement on May 31st. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to
