[HONG KONG] Asian equities stabilised on Friday following the previous day’s US bond-fuelled sell-off with traders tracking a slight pullback in Treasury yields as Donald Trump’s signature tax-cutting budget passed a key congressional vote.
Worries about the US budget deficit have returned to the fore this week after Moody’s removed its top-tier credit rating and the president pushed ahead with a budget that some suggest will expand the country’s ballooning debt.
A tepid auction of 20-year Treasuries on Wednesday ramped up those concerns, dealing a blow to stocks that had just recovered from the April fireworks of Trump’s tariff blitz.
Still, risk appetite returned in New York on Thursday, with yields pulling back after the Republican-led House narrowly passed Trump’s “One Big, Beautiful Bill Act”, which shrinks social safety net programmes to pay for a 10-year extension of his 2017 tax cuts.
The package, which now goes…
