From Tariffs to Taxes: Markets React to Fiscal Overload With foreign buyers pulling back and debt issuance rising, duration buyers are facing real headwinds. The recent budget proposal includes sweeping tax cuts—offset by hoped-for future savings—while continuing to run deficits in the 5–6% range. The result? A sharp selloff in long-duration Treasuries and rising pressure on the 30-year yield, now back at its highs for the year. Palmer Square Capital Management is watching these dynamics closely—and actively positioning portfolios to manage rate risk in a shifting macro environment. #FixedIncome #FiscalPolicy #InterestRates #TreasuryYields #CreditMarkets #PalmerSquareCapitalManagement
